SK hynix CEO Kwak Noh-Jung has warned that the global memory market could face the most severe shortage in its history in 2027. He said demand for DRAM, including high-performance HBM for AI infrastructure, as well as NAND, will exceed available production capacity not only next year but for longer — at least into the start of the next decade.
The main source of pressure is the rapid growth of demand from data centers. Major customers are signing multi-year supply agreements, while memory makers increasingly prioritize more expensive and profitable products: HBM for AI accelerators, LPDDR5X for flagship devices and server-grade solutions. As a result, standard DDR5, DDR4 and more affordable mobile LPDDR memory are receiving less manufacturing capacity.
Samsung and Micron have issued similar assessments. Samsung has warned that the situation could become even tougher in 2027 because manufacturers cannot expand output fast enough to match demand. Micron has also said the shortage is still at an early stage and that it can satisfy only about 50–66% of customer demand for memory.
For SK hynix, Samsung and Micron, the situation is profitable, but it is becoming increasingly painful for the rest of the market. Strong demand for premium memory is boosting manufacturers’ earnings, while the consumer segment faces sharp price increases. Higher costs are already affecting PCs, smartphones, game consoles and other devices in which memory accounts for a meaningful share of the bill of materials.
Chinese memory makers are expanding more aggressively amid the shortage, including CXMT in DRAM and YMTC in NAND, primarily to cover domestic demand. SK hynix is also preparing a multi-year production expansion and investing in new facilities in South Korea and the United States. Even so, large-scale investment will not quickly eliminate the imbalance between supply and demand.