SK Hynix boss says the memory chip shortage is going to last until 2030

[Alfonso Maruccia]

Facepalm: At this point, end users and consumer hardware enthusiasts are hoping the AI bubble will finally burst once and for all. Meanwhile, chip manufacturers remain unable to keep up with the explosive demand from Big Tech and AI data center ventures. SK Hynix now predicts that the silicon industry won't return to a more rational state anytime soon. It's better to prepare for the worst.

According to recent statements by SK Group chairman Chey Tae-won, ongoing issues in the memory and silicon supply chain are unlikely to improve for another four to five years. SK Group owns SK Hynix, the world's third-largest semiconductor manufacturer and an integrated device manufacturer with in-house foundry capabilities. While SK Hynix is currently experiencing a surge in revenue, it still cannot meet the demand from its enterprise customers.

Chey Tae-won spoke with reporters during Nvidia's GTC event in San Jose, California, confirming that SK Hynix and other major players in the silicon industry are expected to fall short of customer demand until 2030. The South Korean company is already struggling with a 20% backlog of orders for basic wafers needed to produce new memory chips.

SK Hynix now controls more than 50% of the global market for high-performance HBM memory chips, along with 32% of the overall DRAM market. Together with Samsung and Micron, the company is playing a major role in the AI sector and the broader technology industry. Prices are skyrocketing – but that's not even the worst part of the problem.

Tae-won noted that SK Hynix's inability to fully meet demand is beginning to affect its profit margins. The company has already invested in a major expansion of its manufacturing plants, and new plans are reportedly in the works to help stabilize market prices. However, SK Group's chairman did not provide any concrete details about these measures.

A few months ago, the Korean company stated that it had already sold its entire manufacturing capacity for memory products for 2026. Ongoing geopolitical tensions – including the US and Israel's military actions against Iran – are likely to exacerbate market uncertainties and supply chain disruptions, as demonstrated by the recent drone strike on a helium supply facility in Qatar.

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SK Hynix boss says the memory chip shortage is going to last until 2030

 

[bviktor]

Don't worry dude, these AI startups will collapse much-much sooner. And so will you margins.

 

[toooooot]

"SK Hynix boss says the memory chip shortage is going to last until 2030"

No, it was not like that.

Hynix boss said that memory chip shortage will last till 2030, he said it with optimism and happiness on his face. Then he giggled like a little girl.

 

[themastergoose]

SK Hynix: We’re gonna engineer this shortage for as long as possible. Pay up peasants.

 

[mgilbert]

I once went seven years between major upgrades. Considering that I paid just over $200 for the 64GB of DDR5 in my current system, and that same kit is now over $1100, I have a feeling it is going to be beyond 2030 before I perform another MB/CPU/DRAM upgrade. The AI collapse can't come soon enough.

 

[NumberNine]

I'm sure they're weeping at the situation as they jack prices and rake profits. They can have it. My workload is static and I have spares.

 

[Hecate91]

It seems like memory manufacturers want the shortages to be drawn out for as long as possible, and they aren't even trying to expand to add more capacity.
IMO, these manufacturers need to be investigated again for collusion and price fixing.

 

[NumberNine]

It seems like memory manufacturers want the shortages to be drawn out for as long as possible, and they aren't even trying to expand to add more capacity.
IMO, these manufacturers need to be investigated again for collusion and price fixing.

These are the same clowns that cut production when pricing isn't enough for favorable margins. Absolute vultures.

 

[Kashim]

All these frequent articles about memory and storage shortages, but oddly enough there are no articles of any of these big companies pledging to drastically (or at all) increase production capacity to ease shortages. I guess if it was up to them they would keep prices sky high forever by creating an artificial shortage. Yay capitalism!

 

[Endymio]

All these frequent articles about memory and storage shortages, but oddly enough there are no articles of any of these big companies pledging to drastically (or at all) increase production capacity to ease shortages.

You haven't been paying attention. Every major memory maker has not only pledged to drastically increase production, but is already doing so. Here's just one of thousands of stories:

SK Hynix ramps DRAM output eightfold but global memory scarcity pressures pricing and supply chains - Astute Group

SK Hynix plans to increase DRAM production capacity by up to eight times in 2026, but analysts and OEMs warn that the expansion will not be sufficient to ease current memory shortages or halt price increases already moving through the electronics supply chain.

www.astutegroup.com

 

[Megalomaniac]

Don't worry dude, these AI startups will collapse much-much sooner. And so will you margins.

wishful thinking.

 

[Megalomaniac]

It's time for you to start considering prebuilds. Your days of "building" are OVER.

 

[polord]

Glad that my 4x16gb ddr5 is overkill..

 

[abactuon]

5 Minutes of Fame

 

[p51d007]

MAYBE, just maybe (hope anyway), that this will help BREAK the cycle of buying a new
computer, watch, tv, phone every couple years, and keeping them until they "wear out".
This buy something new, and in a year your phone carrier talks you into upgrading to a
new one. It's silly and those devices not repurposed are sent to a landfill.

 

[Hecate91]

It's time for you to start considering prebuilds. Your days of "building" are OVER.

Buying pre-builts aren't any cheaper.

 

[Vixiy]

How will it get worse than rock bottom?

 

[poohbear]

I once went seven years between major upgrades. Considering that I paid just over $200 for the 64GB of DDR5 in my current system, and that same kit is now over $1100, I have a feeling it is going to be beyond 2030 before I perform another MB/CPU/DRAM upgrade. The AI collapse can't come soon enough.

I upgraded from the 4770k to the 13700k, so that's 9 years. I think I'll be keeping my 13700k & 32gb DDR5 for a similar time line (Intel dropped the ball on the 13xxx series, but it runs cool with an undervolt & power limits).

 

[Achaios]

I don't think this is much of an issue.

Many ppl here drive $150K cars and each own a 5090, a 2KW PSU and multiple rigs.

I am sure they can cough up $1K-2K for RAM. It's easy, just swipe credit card and you're done.

You make it sound like the end of the world is nigh, but no. You'll just keep paying like you paid $4K to buy a 5090 and call it a day.

 

[Melkor Unlimited]

SK Hynix boss says the memory chip shortage is going to last until 2030

Thank for "early" warning.

Glad that my 4x16gb ddr5 is overkill..

Bought 2x 24GB into my secondary rig.
Should have bought 2x 48GB.
Its too late now

 

[Chris Rchr]

SK Hynix is ​​complaining that they can't rake in as much as they'd like. The "shortage" they describe is their own inability to serve even more customers and collect even more profit margins.
When Chey says that "the inability to meet demand affects margins," he's not talking about losses—he's talking about untapped potential revenue. It's a first-world problem.

 

[Jack77]

How will it get worse than rock bottom?

Diamond bottom?

 

[JamesBlond]

There is no chip shortage we are manufacturing full 100% no shortage, you ***** are just going to have to pay more because we need money to build massive AI

 

[WhiteLeaff]

Throw that foul-mouthed guy in jail.

We don't have enough sand! lol

 

[Hanzi]

All these frequent articles about memory and storage shortages, but oddly enough there are no articles of any of these big companies pledging to drastically (or at all) increase production capacity to ease shortages. I guess if it was up to them they would keep prices sky high forever by creating an artificial shortage. Yay capitalism!

That's not capitalism, that's monopoly.
Cartel agreement of three manufacturers (SK Hynix, Micron, Samsung)