SK Hynix CEO: Memory Shortage to Last Through 2030, Demand Secure Beyond

SK Hynix CEO Kwak Noh-jung delivered the semiconductor industry's most bullish outlook to date, stating that the memory chip supply shortage will persist until the end of 2030, and even if a downturn occurs then, the impact will be far smaller than historical levels. He anchored this logic in an AI-driven structural shift: demand is accelerating from standardized products to customized ones, potentially rewriting the cyclical pattern of supply-demand imbalance.

SK Hynix CEO Kwak Noh-jung offered a long-term optimistic assessment of the global memory chip market, providing strong backing for the semiconductor industry's sustained prosperity.

On Aug. 27 local time, Kwak held a press conference after the groundbreaking ceremony for an advanced packaging production base for AI memory at Purdue University in West Lafayette, Indiana, USA, clearly stating that the memory chip supply shortage will continue until the end of 2030. He also noted that even if a downturn occurs then, demand will not shrink sharply, saying, "There is no need to worry even after 2030."

Kwak emphasized that there are currently no clear signs of a downturn, and the AI-driven demand structure is shifting from standardized products to customized ones, which will fundamentally change the past cyclical pattern of supply-demand imbalance, making any future downturn's oversupply impact far smaller than historical levels.

Shortage Cycle May Extend to End of 2030

When asked how long the memory supply shortage will last, Kwak said, "No one can know exactly how long the shortage will last, but there are no clear signs of a downturn at present, and we expect the shortage to continue until the end of 2030."

This is the most specific timeline prediction by SK Hynix executives for the current memory upcycle. Kwak also said, "The next downturn will be different from what we have experienced over the past decades," hinting that the structural support for this cycle is more solid than before.

AI Customization Demand Reshapes Supply-Demand Structure

Kwak attributed the core logic of his judgment to structural changes in AI demand. He pointed out that AI business models are driving memory products from 100% standardized to partially customized or even fully customized products.

This means supply will be more closely tied to specific demand, structurally reducing the room for oversupply. Kwak said, "Even if a downturn comes, demand will not decrease sharply; it is more likely to slow down or remain at planned levels," and on this basis, he expressed no concern about the market outlook after 2030.

When asked whether there are plans to further expand semiconductor production facility investments in the United States, Kwak said, "As long as there are places that can provide sufficient resources such as electricity, funding, and subsidies, we are open to any location."