SK Hynix reports that its DRAM and HBM manufacturing volume is effectively sold out through 2029, with memory demand projected to outpace supply through 2030.
Over 50% of capacity for 2027 and 2028 is already secured via long-term agreements with major cloud providers.
South Korean company SK Hynix announced that demand for key memory chips used in all kinds of electronic devices is expected to exceed supply by 2030. According to company executives, major technology companies have already committed more than 50% of production capacity for 2027 and 2028 through long-term contracts.
When the contracts already closed and the discussions taking place for new orders are taken into account, the company's available production for the coming years, that is, until 2029, is considered practically exhausted. The company has signed such agreements with 14 key customers, including large Internet service providers.
Market position and new factories
SK Hynix, which ranked second in the global memory market in the second quarter with a 25% share according to Counterpoint Research, says it is accelerating its investment to build new factories. However, because such facilities take many years to build, the company estimates it will be difficult to fully meet customer demands in the near future.
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This tight market means that the price hikes across all consumer electronics are likely to continue until the end of the decade. The graphics card market has been particularly hard hit, with prices for Nvidia's top-of-the-line models rising steadily, reportedly forcing the company to delay the release of new models.
The impact on computers and mobiles
The shortage has also caused a significant drop in shipments of new computers and mobile phones. SK Hynix also said that while sales of computers and mobile phones are expected to decline due to increased costs and material shortages, the huge demand for artificial intelligence infrastructure is expected to more than offset this decline, keeping the overall memory market growing.
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