SK Hynix Warns of Worst-Ever AI Memory Shortage in 2027

As the artificial intelligence industry booms, high-bandwidth memory (HBM) has become a critical component in AI chips. South Korea announced an 800 trillion won semiconductor investment plan in June 2026 that aims to double SK Hynix and Samsung's DRAM capacity by 2030. As the HBM market leader, SK Hynix's expansion pace is crucial to the stability of global AI chipmakers' supply chains and could reshape supply and demand across the semiconductor industry.

Bank of America said in a July 2026 report that technical and construction bottlenecks could limit SK Hynix's additional memory capacity through 2028 to just one-sixth of the planned amount, while bringing new plants to full operation could take 10 years. The constraints threaten its goal of doubling capacity by 2030 and could directly slow its shift toward HBM and other critical AI components. Combined with a price-manipulation lawsuit facing the company, they could also prolong tight memory supplies.

The boom in generative AI and data-center construction is driving demand for high-bandwidth memory, or HBM. Samsung Electronics, SK hynix and Micron are shifting resources toward higher-margin products, squeezing supplies of conventional DRAM and NAND. HBM is a critical component in AI accelerators, and shortages could affect server delivery times, electronics costs and the semiconductor industry cycle.

Micron recently reported better-than-expected results, while the market estimates SK hynix’s revenue could reach $54.8 billion. Samsung and SK hynix have said their main memory capacity is fully booked through 2027. The industry estimates that even with manufacturers accelerating HBM capacity expansion, the supply shortfall will still be about 40% at the end of 2027. New capacity may not begin gradually easing the pressure until after 2027 at the earliest.

The generative AI boom and wave of data-center construction have driven demand for high-bandwidth memory, or HBM, and DRAM, making memory a critical bottleneck in the AI chip supply chain. SK hynix is a major NVIDIA supplier, while TSMC provides advanced manufacturing and packaging. Cooperation among the three companies will directly affect global AI server capacity and costs.

SK Group Chairman Chey Tae-won predicted at NVIDIA GTC 2026 that the memory supply shortfall caused by expanding AI demand could persist through 2030. He also called TSMC an indispensable partner in building AI solutions. SK hynix is preparing a plan to stabilize DRAM prices and is considering issuing American depositary receipts, or ADRs, in the United States, but has not disclosed the size or timing of a potential offering.