South Korean chip company SK Hynix expects strong demand and tight supply for memory chips will persist, prompting the company to announce plans Tuesday to expand production capacity and increase investment next year. It now thinks the memory supply shortage will continue through 2030 thanks to the AI boom.
This dynamic also boosted the company’s third-quarter earnings, with revenue up 328% year-over-year and operating profit up 632% in the same period, according to its earnings report.
In an earnings call Tuesday, CFO Woo-Hyun Kim said these conditions led to “sustained rise in memory prices.”
“Both DRAM [dynamic random-access memory] and NAND recorded high price increase rates for a second consecutive quarter, driven by continued price hikes centered on HBM, server DRAM and enterprise SSD,” Kim said, according to the transcript.
