Investing.com — chief executive Kwak Noh-jung warned Friday that the global memory industry faces its worst supply shortage ever in 2027, as demand for memory chips continues to outpace production capacity.
The South Korean memory chipmaker expects customer demand to exceed its supply capacity beyond 2030, Kwak said in an interview on Friday. The company is working to address the capacity limitations as customer demand continues to rise.
“We forecast that next year will be the worst year in the industry’s history from the supply perspective,” Kwak said. “Our customer demand continues to go up, while our capacity has limitations. 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.”
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Kwak made the comments on the day SK Hynix began trading on the Nasdaq following its blockbuster IPO. The company sold 177.9 million American depositary shares at $149 each, raising $26.5 billion in the world’s second largest listing ever, behind SpaceX.
The stock opened for trading Friday at $170, 14% above the IPO price. Shares were trading up roughly 14.8% at around $171 on Friday afternoon.
SK Hynix has become a key player in the AI supply chain through its development of high-bandwidth memory used in Nvidia chipsets.