SK Hynix expects 2027 to be the most supply-constrained year in the history of the memory industry, according to CEO Kwak Noh-Jung, who said customers are actively seeking long-term supply agreements. The company also said demand could still outstrip supply after 2030 even if capacity expansion continues.
SK Hynix’s ADR rose 12.76% on its first trading day, while the company raised about $26.5 billion, setting a funding record for a foreign company’s U.S. IPO. The proceeds are set to go toward wafer fabs, advanced packaging lines and lithography equipment, while also supporting closer work with AI customers and hiring AI talent.
Kwak also said the company is exploring a “memory as a service” model that could shift part of its business from direct chip sales to leasing storage resources. At the same time, industry institutions expect the HBM market to remain undersupplied as AI computing demand grows, with HBM4 prices in 2027 potentially doubling from 2026 levels. Global HBM suppliers are also locking in capacity through three- to five-year agreements with leading AI customers.
SK Hynix CEO Kwak Noh-Jung said this week that 2027 could become the most supply-constrained year in the history of the memory industry, according to BlockBeats. He said customers are actively seeking long-term supply agreements, and the company expects demand could still exceed supply after 2030 even if capacity expansion continues.
SK Hynix’s ADR climbed 12.76% on its first trading day. The company raised about $26.5 billion, setting a record for a foreign company’s U.S. IPO. SK Hynix said the proceeds will mainly be used for investment in wafer fabs, advanced packaging lines and lithography equipment, while also deepening cooperation with AI customers and building up its AI talent pool.
Kwak also disclosed that the company is exploring a “memory as a service” model. Under that approach, SK Hynix could in the future lease storage resources to customers instead of only selling chips directly.
Industry institutions expect the HBM market to remain in shortage as demand for AI computing power keeps rising. HBM4 prices in 2027 could double from 2026 levels, and global HBM makers are locking in capacity by signing three- to five-year long-term agreements with leading AI customers.
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