SK Hynix CEO Warns Of Worst-Ever Memory Chip Shortage In 2027

SK Hynix CEO Kwak Noh-jung says the global memory chip industry is heading toward its worst supply shortage on record next year. Speaking on the day his company began trading on Nasdaq, Kwak said customer demand keeps climbing while production capacity remains limited, and he expects demand to outpace supply well past 2030 despite ongoing expansion efforts.

Strong Nasdaq Debut

SK Hynix shares jumped more than 13% on their Nasdaq debut, reflecting the company’s central role in supplying high-bandwidth memory used in Nvidia’s AI chipsets. Despite a recent pullback of about 18% over two weeks on AI sustainability concerns, the stock remains up more than sevenfold over the past year.

US Expansion Under Review

Kwak said the United States remains among several locations being considered for a future wafer fabrication plant, alongside Japan and Southeast Asia. No final decision has been made, with the company prioritizing sites offering reliable land, power, water, and skilled labor at competitive costs.

Industry Backs The Shortage Outlook

Nvidia CEO Jensen Huang has said AI memory shortages will likely continue for years, naming SK Hynix as Nvidia’s largest memory supplier. UBS projects the DRAM market will stay undersupplied until at least mid-2028. Micron also announced plans this week to invest more than $250 billion in US manufacturing through 2035, citing surging AI-driven demand.

SK Hynix posted a record 47 trillion won in operating profit in 2025, with estimates pointing to even stronger results in the most recent quarter.