SK hynix CEO says 2027 will be the worst year on record for memory supply

Q: Which memory types does SK hynix expect to prioritize for increased production (for example HBM vs non-HBM DRAM)?

SK hynix expects to prioritize increased HBM production for AI and data centers. The article notes non-HBM DRAM, used in consumer laptops, desktops, and mobile devices, will face especially severe supply strain while most growth comes from HBM production.

Q: What locations is SK hynix considering for new fabrication plants to increase memory production?

SK hynix is considering the United States, Japan, and Southeast Asia as potential locations for new fabrication plants to increase memory production.

Q: How might the anticipated 2027 supply shortfall impact DRAM prices for desktop and laptop components?

The anticipated 2027 supply shortfall is likely to drive DRAM prices for desktop and laptop components higher, since non-HBM DRAM for consumer devices will remain constrained while demand grows. The primary article says this double-digit demand growth has already led to dramatic price increases that affect any device with DRAM. Analysts have also forecast record-high PC DRAM pricing, with one report revising Q1 2026 PC DRAM increases to 105-110% (see Related 1 , News #109996).

'We forecast that next year will be the worst year in the industry's history from the supply perspective,' SK Hynix CEO Kwak Noh-Jung said.

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Kosta Andreadis

Senior Editor

Published Jul 22, 2026 1:58 AM CDT

1-minute read time

TL;DR: SK Hynix CEO Kwak Noh‑Jung warns 2027 will be the worst year ever for memory supply: wafer and fab growth (~12%) won't meet surging DRAM demand-driven largely by HBM for AI/data centers-causing higher prices and strain on consumer devices, with shortages expected to persist beyond 2030 despite expansion plans.

Voice: Kosta AndreadisSpeed

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"We forecast that next year will be the worst year in the industry's history from the supply perspective," SK Hynix CEO Kwak Noh-Jung told Reuters in a recent interview. Yes, it seems that even with wafer supply and manufacturing expected to grow by around 12% in 2027, it's still nowhere near enough to meet the growing demand.

SK hynix CEO says 2027 will be the worst year on record for memory supply 2

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Especially when it comes to non-HBM DRAM, the memory that finds its way into consumer tech like laptops, desktops, and mobile devices. Most of the growth is expected to be driven by increased HBM production for AI and data centers, as demand for DRAM is expected to surge to new heights. Basically, an already dire situation for the consumer technology market is expected to get worse. And to make matters worse, 2028 isn't looking any better.

"Our customer demand continues to go up, while our capacity has limitations," Kwak Noh-Jung added. "We still forecast that customer demand will remain higher than our supply capacity even beyond 2030. But we are doing our best to solve the problem."

Read more: RAM price increases and shortages have only just started, TeamGroup says
Read more: SK hynix sold out of HBM for 2025, soon taking customer orders for 2026 supply of HBM
Read more: SK hynix internal analysis warns DRAM supply growth will be tight until 2028

"Doing our best" most likely relates to expanded manufacturing, with SK hynix looking to external locations like the United States, Japan, and Southeast Asia as potential candidates for new fabrication plants. Alongside Samsung, SK hynix is one of the biggest players in the memory space. As both companies are located in South Korea, they're actually working with the South Korean government to double memory chip production in the country within the next five years.

Frequently Asked Questions

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Question #1

How will the projected 12% wafer supply and manufacturing growth in 2027 affect availability of non-HBM DRAM for consumer PCs and laptops?

Even with wafer supply and manufacturing expected to grow by about 12% in 2027, that increase will not be enough to meet demand, so availability of non-HBM DRAM used in consumer laptops and desktops will remain tight. Most capacity growth will go to HBM for AI and data centers, leaving non-HBM supply constrained and contributing to higher prices and worsened conditions for consumer devices.

Answered

Question #2

Which memory types does SK hynix expect to prioritize for increased production (for example HBM vs non-HBM DRAM)?

Question #3

What locations is SK hynix considering for new fabrication plants to increase memory production?

Question #4

How might the anticipated 2027 supply shortfall impact DRAM prices for desktop and laptop components?

Have a question not listed here? Ask below and TweakBot will answer it.

Of course, this doesn't change the current situation where double-digit growth in demand is putting a strain on all memory production. This in turn has led to dramatic price increases that have now found their way into all corners of the tech industry. Basically, any device with DRAM or memory is affected.