SK Hynix expects demand for memory chips to keep exceeding supply through 2030, as AI infrastructure expands beyond cloud data centers. The warning came alongside record quarterly results for the South Korean chipmaker, which is increasing investment in production but says new capacity takes years to build. For PC and smartphone makers, the outlook points to continued cost and supply pressure.
Key takeaways
- SK Hynix expects memory demand to outpace supply through 2030.
- More than half of its production capacity for 2027 and 2028 is committed under long-term agreements.
- The company reported quarterly revenue of 104.6 trillion won, or about $78 billion.
- Persistent shortages could push up costs for PC, smartphone and console makers.
For PC builders and hardware buyers, the key concern is that AI-focused demand could compete for memory resources used across the broader electronics market.
AI demand is expanding beyond data centers
SK Hynix said demand is growing as businesses adopt AI tools and governments invest in domestic computing infrastructure. It also expects future demand from robotics and autonomous vehicles. The company described a cycle in which AI-driven productivity and new services encourage further investment in AI systems—and, in turn, more demand for memory.
High-bandwidth memory (HBM), used alongside AI accelerators, is a major part of this market. SK Hynix expects HBM4 to overtake HBM3E in both shipments and revenue in the fourth quarter, making it a mainstream product. It is also expanding DDR5 and LPDDR5 SOCAMM offerings for AI servers and developing NAND technologies aimed at improving AI storage performance and efficiency.
New capacity will take time
The company said advanced manufacturing processes are increasingly difficult, while planning and building production facilities requires long lead times. As a result, adding capacity cannot quickly match demand. SK Hynix plans to invest at least 40 trillion won—about $30 billion—in capacity this year, up from roughly 30 trillion won in 2025.
The company has signed long-term agreements with 14 major customers, covering more than half of its expected output in 2027 and 2028. Those commitments provide greater visibility into future sales, but also leave less supply available to buyers without similar agreements.
PC and mobile buyers could feel the effects
SK Hynix’s quarterly revenue reached 104.6 trillion won, while operating profit was reported at roughly 83 trillion won, or about $62 billion. The company attributed its results to strong demand for advanced memory and said it plans to expand production while prioritizing higher-value products.
The shortage could have consequences beyond AI servers. SK Hynix expects shipments of PCs and mobile devices to decline as manufacturers face higher memory costs and limited supply. For computer enthusiasts and gamers, that may mean continued pressure on system prices and component availability, though the company’s forecast does not specify how costs will change for individual products.
Via SK Hynix