In its October 27, 2026, third-quarter results, SK hynix forecast that memory demand will exceed supply through 2030. The company cited market growth, the technical difficulty of advanced manufacturing processes and the long lead times for building production facilities. This is a company forecast, not a guarantee about every type of memory. SK hynix’s Q3 results release sets out the outlook and its capacity plans.
Why SK hynix expects demand to outpace supply
The company’s explanation combines rising demand with constraints on adding capacity. More advanced production processes are technically difficult, while new facilities take a long time to build. SK hynix did not give a specific construction timeline in the statement.
For a related look at the investment question behind AI memory demand, NeoTeo previously examined the sustainability of demand for AI memory.
What the customer agreements and expansion plans cover
SK hynix said agreements with 14 major customers cover more than 50% of its total production capacity in each of 2027 and 2028. The company also said HBM4 shipments began in earnest during the third quarter of 2026, and forecast that HBM4 would surpass HBM3E in both shipment volume and revenue during the fourth quarter.
The company planned to ramp its M15X facility to maximum capacity by the end of 2026 to increase HBM4 production. It projected that Yongin Phase 1 would enter full-scale operation in 2027.
