SK Hynix CEO: 2027 will be the most shortage-hit year in the history of the storage industry

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BlockBeats, July 12: SK hynix CEO Kwak Rho-sung said this week that he expects 2027 to become the most supply-tight year in the history of the storage industry. Customers are actively seeking long-term supply agreements, and even if production continues to expand, demand may still exceed supply after 2030.

On the first day of trading of SK hynix’s ADR listing, it rose 12.76%. It raised about $26.5 billion, setting a record for IPO financing by foreign companies going public in the U.S. The company said the funds will be mainly used for investments in wafer fabs, advanced packaging lines, and lithography equipment, and to further strengthen cooperation with AI customers and build a reserve of AI talent.

Meanwhile, Kwak Rho-sung revealed that the company is exploring a “memory-as-a-service” model, and may in the future provide customers with storage resource leasing services rather than selling chips directly.

Industry institutions expect that, driven by AI compute demand, the HBM market will continue to face supply shortages. The price of HBM4 is expected to double in 2027 compared with 2026, and global HBM manufacturers are locking in capacity by signing 3 to 5 year long-term agreements with top AI customers.

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