SK Hynix CEO warns memory shortage to persist through 2030; Indiana fab to mass-produce HBM4E in Q3 2029

Author: Mohd Haider Reading Time: 2 min

South Korean chipmaker SK Hynix (NASDAQ: SKHY) announced Thursday that it will begin volume production of next-generation HBM4E chips at its Indiana facility in the third quarter of 2029. CEO Kwak Noh-Jung warned that the current memory shortage will persist through 2030.

Billion-Dollar Bet on U.S. AI Supply Chain

The more than $4 billion project will expand SK Hynix's presence in the United States, as growing AI investment drives demand for high-bandwidth memory.

The site at Purdue Research Park will allow the company to produce chips closer to major customers, including:

• Nvidia (NASDAQ: NVDA)
• Microsoft (NASDAQ: MSFT)
• Alphabet (NASDAQ: GOOG, GOOGL)

Jung stated: "The United States is the epicenter of AI innovation, bringing together premier customers, top-tier R&D capabilities, and partners, and the Indiana fab will become a gateway to deliver first Made in USA HBM products."

Dominant Market Position Reinforces Bullish Outlook

According to Counterpoint Research, SK Hynix held 58% of the global HBM market by revenue in the first quarter of 2026, outpacing Samsung Electronics and Micron Technology (NASDAQ: MU), each at 21%.

Nvidia, a major SK Hynix customer, forecast a 70% jump in revenue for the next fiscal year, reinforcing confidence in sustained AI-chip demand and supporting Kwak's view that the memory upcycle has room to run.

The U.S. government supported the project with $458 million in CHIPS Act grants and up to $500 million in loans, with the funding finalized in December 2024.

Trading Metrics

• Market Capitalization: Approximately $912.37 billion
• 52-Week High: $194.45
• 52-Week Low: $124.80
• Past Month Performance: Gained 24.15%

Needham analyst N. Quinn Bolton raised his price target on SK Hynix to $220 from $200 on Monday, maintaining a Buy rating.

Price Action: SKHY closed the regular session on Thursday at $161.61, up 2.27%, according to Benzinga Pro data. The stock is down 0.58% in after-hours trading.

With a strong Growth score of 98.37, Benzinga's Edge Stock Rankings indicate that SKHY has a positive price trend across all time frames.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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This article SK Hynix CEO Warns Memory Shortage Will Persist Through 2030 as Chipmaker Builds $4 Billion Indiana Fab originally appeared on Benzinga.com.