The CEO of South Korean company SK Hynix, Kwak Noh-jung, warned that the global memory chip industry is heading for its worst supply shortage crisis in 2027. He predicted that demand for memory chips will remain higher than the company’s production capacity even after 2030, despite its ambitious plans to expand production capacity.

In an exclusive interview with Reuters as the shares of the South Korean semiconductor giant began trading on the Nasdaq stock exchange, Kwak said: “We expect next year to be the worst in the history of the technology sector from a supply chain perspective. Our customers’ orders continue to rise steadily while our manufacturing capacity faces strict logistical and structural limits.” He added that the gap where consumer demand exceeds supply capabilities is likely to persist beyond 2030.

Kwak’s remarks come after the South Korean manufacturer made a strong showing in American markets, becoming an indispensable pillar of global artificial intelligence supply chains thanks to its leadership in developing high-speed (HBM) memory chips that are heavily integrated into processors and systems by Nvidia Corporation.

Markets reacted positively to this momentum, with the SK Hynix share price jumping 14.8% on the Nasdaq to $170.94 in afternoon trading. The Korean group is one of the biggest financial beneficiaries of the supercomputing boom, with its operating profits reaching a record high of 47 trillion won (around $31 billion) in 2025, double the previous year’s profits, completely erasing the operational losses recorded in 2023.

Estimates from the London Stock Exchange Group suggest that this quarter could see an even more impressive jump, with operating profits reaching 65.5 trillion won, while the market value of the share has more than sevenfold over the past 12 months despite some recent corrections.

In terms of geographical and investment expansion, Kwak revealed that the United States is still on the list of future investment destinations for building wafer processing and manufacturing plants. He confirmed that the final decision will depend on choosing locations that offer vast areas of land, sustainable supplies of electricity and water, and skilled human resources at competitive manufacturing costs.