SK Hynix Stock Climbs 2% as Chairman Predicts Memory Shortage Through 2030

Key Takeaways

• Chairman Chey Tae-won of SK Group projects the memory chip supply crunch will extend through approximately 2030.
• Artificial intelligence requirements for high-bandwidth memory (HBM) production consume substantial wafer resources, fueling the shortage.
• Current wafer supply trails industry demand by over 20%.
• SK Hynix commands a dominant 57% market share in HBM and holds 32% of worldwide DRAM production.
• The company is exploring the possibility of launching an American Depository Receipt listing stateside.

SK Hynix Chairman Chey Tae-won captured industry attention Monday when he projected the worldwide memory chip supply shortage could persist for an additional four to five years. His remarks came during discussions with media representatives at Nvidia’s GTC conference held in San Jose, California.

SK hynix Inc. (000660.KS)

Chey identified artificial intelligence as the primary driver. “AI actually wants to have a lot of HBM, and once you make the HBM… we have to use a lot of wafers,” he explained to reporters, according to Reuters.

The core issue is straightforward: wafer production capacity cannot match current requirements. Chey indicated that the disparity between available supply and market demand for fundamental wafers utilized in chip manufacturing exceeds 20% throughout the sector. This represents a challenge without quick resolution.

Expanding wafer manufacturing infrastructure requires significant time — Chey estimated a minimum of four to five years — which establishes a baseline for when the shortage might begin to alleviate. This projection suggests approximately 2030 as the target date for supply-demand equilibrium.

Pricing Pressure Intensifies

The supply constraints are already manifesting in current market conditions. Server memory chip pricing escalated between 60% and 76% during Q4 2025, data from Counterpoint Research reveals. Analysts anticipate continued price appreciation extending into Q1 2026.

SK Hynix has emerged as a major winner from these price increases. The firm maintains the leading position in HBM production with 57% market dominance and claims the second spot in worldwide DRAM manufacturing with 32% market share, based on Counterpoint statistics.

The company serves as the principal HBM provider to Nvidia, whose processors form the backbone of AI infrastructure expansion fueling current demand levels.

SK Hynix shares climbed more than 2% Tuesday in response to the chairman’s statements.

Chey indicated the company plans to develop strategies aimed at stabilizing DRAM pricing, though specific implementation details remain undisclosed.

Potential US Listing Explored

In related news, Chey verified that SK Hynix is evaluating a prospective American Depository Receipt offering. Such an ADR structure would enable American investors to purchase SK Hynix shares directly through US stock exchanges rather than accessing Korean markets.

No definitive timeline or official determination has been released regarding this initiative.

Samsung Electronics and American-based Micron complete the leading trio in global memory production. Micron holds the third position internationally in memory and storage semiconductor manufacturing, behind Samsung and SK Hynix.

Chey’s observations arrive as the artificial intelligence sector continues generating unprecedented demand dynamics throughout semiconductor supply networks. SK Hynix shares have appreciated substantially across the previous three years as AI-linked purchase orders have expanded.

Counterpoint analysis demonstrates server memory requirements have grown steadily in parallel with AI infrastructure investment, with no indication of deceleration.

The latest available statistics position server memory price growth definitively upward entering 2026, with additional increases anticipated as supply limitations persist.