SK Hynix Predicts Global Memory Chip Shortage Will Persist Until 2030

SK hynix warned that the worldwide memory chip deficit could persist until 2030 as artificial intelligence expansion strains supplies, even as it reported record third-quarter financial results.

NationPulse Desk

Oct 29, 2026 · 4:29 PM 3 min read

Key takeaways

SK hynix warned that the global memory chip shortage could continue until 2030.

The company reported third-quarter revenue of approximately $78.4 billion and an operating profit of around $62.4 billion.

SK hynix held 25% of the global DRAM market by revenue in September.

The new M15X production facility is expected to reach full capacity by the end of 2026.

SK hynix canceled its plans for an initial public offering of Solidigm.

South Korean memory producer SK hynix cautioned that the worldwide memory chip shortage may persist until 2030 due to rising artificial intelligence demand pressing down on supplies. The firm released this caution alongside third-quarter financial results for 2026, which revealed record operating profit and revenue.

The business announced revenue totaling around $78.4 billion, passing a major quarterly sales milestone for the initial time. Operating profit reached about $62.4 billion, and net profit totaled roughly $29.8 billion, giving SK hynix an operating profit margin of 80% and a net profit margin of 38%.

AI Demand Drives Record Earnings

SK hynix stated that heavy demand for AI memory boosted its earnings and profits. Purchases of high-bandwidth memory chips, specifically HBM4, kept climbing as artificial intelligence firms grew their computing infrastructure. High-bandwidth memory is a fast memory type used inside powerful processors running artificial intelligence models. The firm projects HBM4 will surpass the older HBM3E standard in shipment volume and sales revenue during the fourth quarter. Need for server DDR5 memory and LPDDR5 SOCAMM memory modules also rose. Counterpoint Research indicated in a September report that SK hynix held 25% of the worldwide DRAM market by revenue, trailing Samsung at 38% and leading Micron at 24%. These firms also supply memory chips for smartphones and other electronics, including Apple devices.

Memory Shortage Could Last Until 2030

Despite strong financial performance, SK hynix cautioned that memory makers struggle to match demand. The enterprise anticipates demand will outstrip supply through 2030, driven mainly by ongoing investment in artificial intelligence systems. Over coming years, businesses and consumers are expected to drive much of the demand for artificial intelligence memory. In the longer term, robotics, self-driving vehicles, and other artificial intelligence technologies could raise demand further. SK hynix noted that constructing new factories and developing advanced manufacturing processes takes considerable time, making fast production increases difficult.

SK Hynix Plans to Increase Production

To tackle the shortage, SK hynix intends to grow its manufacturing capacity. The M15X production site is projected to hit full capacity by the end of 2026, supporting the creation of advanced HBM4 memory. The factory is projected to manufacture around 55,000 to 60,000 wafers each month using the 1b DRAM manufacturing process. SK hynix also scales up production of newer 1c DRAM technology, used in products like LPDDR6. Meanwhile, the enterprise reported increased sales of 321-layer NAND flash memory used in enterprise solid-state drives. It projects this technology will account for over half of domestic NAND production capacity by year-end. The firm also develops High Bandwidth Flash, a new storage type built for artificial intelligence servers. High Bandwidth Flash could enable artificial intelligence systems to access large data amounts without keeping everything in expensive high-speed RAM.

Company Reports Strong Cash Position

SK hynix reported better financial positioning as well. At the end of the third quarter, the enterprise held approximately $85.8 billion in cash and cash equivalents, rising about $19.9 billion from the previous quarter. Borrowings decreased by approximately $2.1 billion to $11.8 billion. Consequently, the net cash position climbed to approximately $73.9 billion. The firm also secured long-term supply deals with 14 major customers, covering over half of expected production capacity for 2027 and 2028.

SK Hynix Cancels Solidigm IPO Plans

SK hynix also chose to cancel initial public offering plans for Solidigm, its flash memory subsidiary. CEO Kwak Noh-Jung stated the proposed listing aimed to raise funds for expanding Solidigm production facilities while easing the financial burden on SK hynix. However, the enterprise reviewed market conditions and concluded that proceeding with the initial public offering would not deliver expected benefits. SK hynix also intends to return approximately $74.9 billion to shareholders during 2026 via dividends and share repurchases, including gains from its investment in Japanese memory maker Kioxia. Recent results demonstrate how strongly artificial intelligence demand benefits memory producers, though the warning indicates the global shortage of advanced memory chips may persist for several years.

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