SK Hynix CEO Forecasts 'Worst Ever' Memory Chip Shortage in 2027

The chief executive of SK Hynix warned on Friday that the global memory industry is heading for its most severe supply shortage in history in 2027, as relentless demand for artificial intelligence hardware outstrips production capabilities.

CEO Kwak Noh-jung stated that the South Korean chipmaker anticipates customer demand will continue to exceed its supply capacity even beyond 2030.

A Looming Supply Crunch

In an interview on Friday, Kwak provided a stark outlook for the memory sector, which is critical for the development of AI technologies. "We forecast that next year will be the worst year in the industry's history from the supply perspective," Kwak said, referring to 2027.

He added, "Our customer demand continues to go up, while our capacity has limitations." The CEO noted that SK Hynix is actively working to address these production constraints, but the imbalance is projected to be a long-term structural issue for the industry.

AI Demand and Market Position

The forecast highlights the intense pressure on the semiconductor supply chain from the explosion in AI development. SK Hynix has established itself as a pivotal supplier in this ecosystem, primarily through its production of high-bandwidth memory (HBM).

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These specialized chips are essential components in the advanced GPU chipsets, such as those made by Nvidia, that power large-scale AI models. The projected shortage underscores the high-stakes environment for tech companies racing to secure the components necessary for their AI infrastructure.

Comments Coincide with Blockbuster IPO

Kwak's comments were made as SK Hynix celebrated a highly successful public debut on the Nasdaq. The company's IPO was the world's second-largest ever, raising $26.5 billion.

Key details from the listing include:

• 177.9 million American depositary shares (ADS) sold.
• An IPO price of $149 per share.

The stock opened for trading on Friday at $170, a 14% premium to its IPO price. According to the source, shares were trading up approximately 14.8% at around $171 in afternoon trading, reflecting strong investor confidence in the company's central role in the AI boom.