SK Hynix CEO Warns Memory Shortage to Persist Through 2030

South Korean chipmaker SK Hynix said Thursday it will begin mass production of its next-generation HBM4E chips at its Indiana plant in the third quarter of 2029, while CEO Kwak Noh-Jung warned that the current memory shortage will last through 2030.

A Multi-Billion Dollar Bet on the US AI Supply Chain

The project, valued at over $4 billion, will expand SK Hynix's footprint in the United States as surging AI investment drives demand for high-bandwidth memory.

The site at Purdue Research Park will enable the company to produce chips closer to key customers such as Nvidia, Microsoft, and Alphabet.

Kwak Noh-Jung said: "The US is the center of AI innovation, bringing together top-tier customers, world-class R&D capabilities, and partners, and the Indiana plant will serve as the gateway to delivering the first US-made HBM products."

Dominant Market Position Bolsters Bullish Outlook

According to Counterpoint Research, SK Hynix held a 58% share of the global HBM market in the first quarter of 2026 by revenue, surpassing Samsung Electronics and Micron Technology, which each held 21%.

SK Hynix's key customer Nvidia forecasts 70% revenue growth for the next fiscal year, reinforcing confidence in sustained AI chip demand and supporting Kwak's view that the memory upcycle still has room to run.

The US government is supporting the project with $458 million in grants under the CHIPS Act and up to $500 million in loans, with the financing finalized in December 2024.

Trading Metrics

SK Hynix has a market capitalization of approximately $912.37 billion. Its stock trades between a 52-week high of $194.45 and a 52-week low of $124.80.

Over the past month, the large-cap stock has gained 24.15%.

Needham analyst N. Quinn Bolton raised SK Hynix's price target from $200 to $220 on Monday, maintaining a Buy rating.

Price action: SKHY closed at $161.61 in Thursday's regular session, up 2.27%. The stock fell 0.58% in after-hours trading.

With a strong growth score of 98.37, Edge Stock Ratings indicates positive price trends for SKHY across all time frames.