SK Hynix expects memory shortage through 2030 as buyers book future output
The chipmaker says long-term agreements cover more than half its production for 2027 and 2028, while rising memory costs could weigh on PC and phone shipments.
SK Hynix said in its quarterly-results outlook published on October 28 that demand for memory chips could exceed supply through 2030. The South Korean chipmaker has long-term agreements covering more than half its output in 2027 and 2028, a commitment that matters to electronics manufacturers already facing higher memory costs.
The Register reported that the agreements are with 14 large buyers and that some want to extend them. Fortune also reported that the deals cover more than 50% of SK Hynix’s production capacity for those two years, citing the company’s earnings presentation. The forecast describes SK Hynix’s expectation for the wider market; the agreements concern its own output.
Why SK Hynix expects demand to stay high
SK Hynix linked the outlook to investment in AI infrastructure. According to The Register, the company expects demand from businesses and countries building their own AI systems, with autonomous vehicles and robotics adding to demand in later years. It said the technical difficulty of advanced chipmaking and the time needed to build production facilities could keep supply from catching up through 2030.
That demand has helped lift its results. Both Fortune and The Register reported quarterly revenue of ₩104.6 trillion ($78.1 billion), up 32% from the previous quarter; Fortune called it a record. Fortune also reported that SK Hynix supplies high-bandwidth memory used alongside Nvidia’s AI accelerators.
What higher memory costs could mean for devices
SK Hynix chief financial officer Kim Woo-hyun predicted that PC and mobile device shipments would fall because manufacturers face rising memory prices and shortages, The Register reported. Fortune said the shortage has already squeezed electronics makers’ margins, making it harder for makers of phones, computers and game consoles to avoid price increases. Neither claim establishes how much any particular device will cost.
The company plans to expand production while putting greater emphasis on higher-value products, The Register reported. Its plans include increasing production of HBM4, a newer generation of high-bandwidth memory. Fortune reported planned capacity spending of at least ₩40 trillion ($30 billion) this year, compared with roughly ₩30 trillion ($23 billion) in 2025. Those investments are part of SK Hynix’s response to demand, while its 2030 supply outlook remains a company forecast.
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Sources and context
- The memory shortage will last until 2030, SK Hynix saysFortune
- SK Hynix says memory shortages to persist until 2030The Register
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.