SK hynix CEO Noh-Jung Kwak says, "There are no signs of a memory downturn... AI has changed the market structure"

[Financial News, West Lafayette = Lee Byung-chul, correspondent]SK hynix expects the AI-driven memory supercycle to continue at least through 2030. The company also believes the risk of a sharp supply glut and price slump, which once shook the memory market, has become lower than before. In the AI era, the memory industry is rapidly shifting from general-purpose products to customer-tailored offerings, making demand easier to forecast.
At a press conference held after the groundbreaking ceremony for its high-bandwidth memory (HBM) production base in West Lafayette, Indiana, on the 27th local time, SK hynix CEO Noh-Jung Kwak said he saw "no clear signs of a current downturn" in the memory market. He added that he expects the supply shortage to continue through 2030.
Kwak said that even if a memory downturn comes in the future, it is unlikely to resemble the severe slumps of the past. "In the past, the memory business was essentially 100% a commodity business," he explained. "Each company increased production and competed in the same market, which made it difficult to accurately predict demand or properly adjust output."
Kwak said AI is changing the structure of the memory industry. As the share of customer-specific products centered on HBM rises, memory makers and clients are working together from the product development stage.
The business model is shifting from 100% commodity products to partially customized products and, ultimately, fully customer-tailored products, Kwak said. "In the case of HBM, we need to work closely with customers from the early stages of next-generation memory development to deliver the best performance in their systems," he said. "That means market demand can be predicted more easily. Even if a downturn comes, it is more likely to show up as slower growth or a flat trend rather than a sharp decline."
He also left open the possibility of additional investment in the United States. Regarding potential sites for further investment, Kwak said, "Nothing has been finalized or narrowed down yet," but added, "We are not ruling out any region, and we are open to anywhere that can provide sufficient water, power, land and support." He said SK hynix is taking a similar stance on the possibility of investing in front-end facilities, which the U.S. government has been asking for.
Kwak cited power, water and talent as key reasons SK hynix chose Indiana for its first manufacturing base in the United States. "After a comprehensive review of land, power, water, talent, and support from local and federal governments as well as the community, Indiana stood out far above the other candidate states," he said. "We hope to successfully complete the plant and produce the first leading HBM in the United States here."


[email protected] Lee Byung-chul, correspondent Reporter