The global memory chip industry is heading for its most severe supply shortage in 2027, according to SK Hynix Chief Executive Kwak Noh-jung. SK Hynix, a South Korean memory chipmaker that supplies high-bandwidth memory (HBM) used in Nvidia’s AI processors, made the assessment in an interview with Reuters on Friday, the same day the company listed on the Nasdaq.

“We forecast that next year will be the worst year in the industry’s history from the supply perspective,” Kwak told Reuters. “Our customer demand continues to go up, while our capacity has limitations.” He added that supply is expected to remain tighter than demand beyond 2030, even as the company expands production.

Kwak also said the United States is one of several sites under consideration for a future wafer fabrication plant, alongside Japan and Southeast Asia. He noted that any new facility would require sufficient land, electricity, water, and skilled labour at competitive costs. SK Hynix is already spending about $4 billion on an advanced packaging facility in Indiana and $10 billion on an AI solutions venture in the US.

As outlined in the Reuters report, SK Hynix’s supply warning follows similar remarks from Nvidia CEO Jensen Huang, who said last month that AI memory shortages would continue for several years. UBS expects the global DRAM industry to remain undersupplied until at least mid-2028, while Bank of America projects hyperscaler capital expenditure of $851 billion this year and $1.15 trillion next year, driven by AI workloads.