SK Hynix forecasts memory shortages until 2030

SK Hynix predicts that memory shortages will persist until at least 2030. The company attributes this structural imbalance to technical difficulties and long lead times for new facilities. CFO Kim Woo-hyun stated that supply cannot keep up with demand due to complexities in leading-edge processes and construction timelines. SK Hynix reported that customer volume requirements are more than double what the company can currently supply. Consequently, DRAM and HBM volumes through 2029 are effectively sold out. The company has long-term agreements with 14 key customers covering more than 50% of its production capacity for 2027 and 2028. These contracts include mechanisms to reflect market conditions within an agreed price range.

SK Hynix reported third-quarter revenue of 104.6 trillion won, a 328% increase from a year earlier. Operating profit reached 83.3 trillion won, up 632%, resulting in an operating margin of 80%. Net income was 39.8 trillion won, down 58% from the second quarter due to non-operating expenses including currency and valuation losses. CEO Kwak Noh-Jung noted that major cloud customers reported year-over-year cloud revenue growth of 30% to 80%. The company expects AI spending to broaden from big tech companies to non-tech firms, sovereign AI projects, and on-prem setups. SK Hynix also anticipates increased demand from autonomous cars and the growing robotics market. The share price increased by about three percent in after-hours trading following the announcement.