GoKawiilSK Hynix CEO Kwak Noh-jung believes the shortage of memory chips could continue until the end of 2030. He said he does not see any clear signs of too many memory chips in the market.
Kwak shared his views after SK Hynix started work on a new chip packaging plant in Indiana, USA. The company is investing in the United States because demand for advanced memory chips is growing quickly.
A major reason for this demand is AI. Companies are spending huge amounts of money to build AI data centers and powerful computers. These systems need large amounts of advanced memory, mainly HBM.
Kwak said memory chips are no longer just basic products. In the past, memory companies mainly made standard chips, which often led to periods of oversupply and falling prices. AI is now changing this situation. Many new memory products are being designed for specific customers and their needs.
Kwak believes this could make future market downturns different from those in the past. He also does not expect AI-related memory demand to suddenly disappear after 2030.
SK Hynix is one of Nvidia’s important memory suppliers. Nvidia has secured about $279 billion in supply and expects its business to grow around 70% through fiscal 2028. Kwak also said SK Hynix could make more investments in the U.S. if there is enough electricity, money and government support. However, investors should remain careful.