SK Hynix CEO Warns Memory Shortage to Last Through 2030 Amid $4 Billion Indiana Fab Expansion
SK Hynix (NASDAQ: SKHY) announced plans for volume production of next-generation HBM4E chips at its new $4 billion facility in Indiana, expected to begin in Q3 2029. CEO Kwak Noh-Jung warned that the current memory shortage will persist through 2030 due to sustained demand driven by AI innovation and growth. The project is part of SK Hynix's strategy to strengthen its U.S. presence, particularly near key customers like Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Alphabet (GOOG). The Indiana facility will serve as a hub for producing high-bandwidth memory closer to major AI technology firms. SK Hynix currently holds 58% of the global HBM market, according to Counterpoint Research. With U.S. government support through CHIPS Act grants totaling $458 million and potential loans up to $500 million, the project underscores a long-term bullish outlook for memory demand in AI applications.
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Topics: AI demand HBM4E chips SK Hynix U.S. manufacturing expansion