SK Hynix predicts global memory deficits will stretch until 2030

The South Korean manufacturer announced the projection alongside record quarterly earnings, reporting quarterly revenue of 104.6155 trillion won (about $78.1 billion), which jumped 32 percent quarter-over-quarter. Outlets reported slightly different figures for operating profit, with The Register citing 87.68 trillion won ($62.8 billion) and Wccftech reporting 83.3338 trillion won (around $62.2B). [1][2]

Executives attributed the enduring crunch to the technical challenges of leading-edge manufacturing and the prolonged lead times required to construct fabrication plants. SK Hynix revealed that 14 major buyers have signed long-term deals that will lock up over half of its production output across 2027 and 2028. To capitalize on the deficit, the company is ramping up 10nm-class 6th generation (1c) process technology and increasing HBM4 output, which it expects will overtake HBM3E in shipment volume and revenue in the fourth quarter. [1][2]

The persistent supply crunch is set to hit consumer technology. Chief financial officer Kim Woo-hyun warned that shipments of PCs and mobile devices will likely fall under the weight of rising memory prices. However, SK Hynix expects appetite for artificial intelligence infrastructure to expand further into general enterprise, sovereign projects, autonomous vehicles, and robotics, prompting investors to lift the company's stock by about three percent in after-hours trading. [2]