SK Hynix CEO Warns 2027 Will Be Memory’s “Worst Year” Ever, With Shortages Set To Outlast The Decade

SK Hynix CEO has warned that memory shortages will be at their worst in 2027 as it celebrates its trading debut on Nasdaq in Times Square.

Memory Supply Won't See Any Sign of Relief Beyond 2030 As SK Hynix Signals 2027 To Be The Worst Year In Terms of Shortages

Well, memory shortages have gripped all aspects of the tech industry, and it seems to have become the norm these days. As the supply crunch continues, the CEO of SK Hynix, one of the three largest DRAM producers, has said that things are about to get much worse for the memory market.

○ 25 Years of Challenges and AI Leadership Through HBM Innovation

• Just 25 years ago, the company faced its most difficult moments in history—including the risk of bankruptcy—yet fought through the crisis with everything it had. The resilience and determination forged in those days have been the driving force behind the SK hynix of today.
• Beginning in 2012, the company joined SK Group and began shaping the future together. Even when the future of advanced memory was uncertain, SK hynix recognized the need for a new technology—HBM—and became the first in the world to make it a reality.
• Through relentless innovation, HBM has come to stand at the very heart of the AI revolution.
• Today, building on its technology leadership spanning HBM, DRAM, and NAND Flash, SK hynix provides the core memory technologies that power AI infrastructure around the world.

Talking to Reuters at the commemoration of SK Hynix's Nasdaq Trading Debut of its ADR, CEO Kwak Noh-jung stated that the memory industry will see its "worst-ever" supply shortages in the coming year (2027). SK Hynix has also forecasted that, given the current market demand, they will fall way short of fulfilling the market demand, and that will continue beyond 2030.

SK Hynix Chief Executive Kwak Noh-jung said the global memory industry is heading for its worst-ever supply shortage ​in 2027, forecasting that demand for memory will continue to exceed the company's ability to produce it well into the next decade despite aggressive capacity expansion.

"We forecast that ‌next year will be the worst year in the industry's history from the supply perspective,"

via Reuters

The comments from SK Hynix are in line with what Samsung and Micron executives have already said. Samsung has warned of 2027 being the worst year in terms of shortages and that things will continue this way till 2028 and beyond. Meanwhile, Micron has said that the current shortages are only the "first innings" and that both DRAM/NAND supply will be tight, as they are only able to meet 40-50% of the total market demand in the coming years.

Heightened demand from AI customers and multi-year agreements further put pressure on the market. The big three DRAM makers have already prioritized premium DRAM segments such as HBM and LPDDR5X, while commodity memory such as DDR5, DDR4, and entry-level LPDDR RAM has taken a back seat.

While these have boosted the profits of SK Hynix, Micron, and Samsung, they have devastated the consumer segment, which is facing the worst kind of price hikes that are affecting all sorts of components and platforms, including PCs, Smartphones, Consoles, etc.

Focus on premium memory has also paved the way for Chinese DRAM and NAND makers to go all-in on production to meet the demands of domestic customers. Names such as CXMT (DRAM) and YMTC (NAND) are doubling their production capacities.

SK Hynix, like Samsung and Micron, is also preparing to embark on a multi-year and multi-billion dollar expansion plan with new fabs and facilities being laid out across South Korea. SK Hynix is also considering the construction of Fabs in the US, Japan, and Southeast Asia, though the final plans are yet to be cemented. Micron recently started construction of its new facility that will be used for DRAM production.

As SK Hynix proudly marks its Nasdaq debut, its CEO’s sobering forecast serves as a clear reminder: the memory industry is entering its most challenging chapter yet. With 2027 poised to bring the worst supply shortages in history and tight conditions likely persisting beyond 2030, the AI boom is reshaping the entire semiconductor landscape.

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