SK hynix CEO Forecasts Memory Chip Shortage Through 2030

SK hynix CEO Kwak Noh-jung announced on Thursday that the global memory chip shortage driven by artificial intelligence is expected to last through the end of 2030. Speaking at a groundbreaking ceremony for an advanced packaging plant in West Lafayette, Indiana, Kwak stated that the industry is shifting from standardized commodity chips to customized products. He noted that this transition allows for closer coordination with customers and better demand visibility, which should make future market downturns less severe than the sharp collapses seen in previous cycles.

Kwak expressed openness to further investment in the United States and other global locations, provided that sites offer sufficient infrastructure including power, water, labor, and government incentives. While he indicated that investment plans have grown modestly from initial agreements with the U.S. government due to strengthened demand, he clarified that no specific new sites have been finalized.

Regarding other corporate developments, Kwak stated that the company has not decided to withdraw plans for a potential initial public offering of its NAND subsidiary, Solidigm. He also mentioned that the company is exploring ways to deepen its role in Japan's semiconductor industry through its stake in Kioxia. Additionally, Kwak introduced a newly established AI company that will serve as an investment vehicle for startups that can create synergy with SK hynix's memory operations.

Technical shifts were also highlighted, with Kwak pointing to HBM4 as an early example of the convergence between memory and logic semiconductors. He suggested that the boundaries between memory, logic, and advanced packaging are blurring as the industry evolves to meet AI demands.