SK Hynix is navigating a severe supply constraint for DRAM and HBM memory chips driven by explosive demand from the artificial intelligence sector. The company reports that its current available production capacity is essentially zero. This shortage prevents the manufacturer from allocating any specific portions of its output to individual high-value customers.
New P&T7 mega fabrication plant equivalent to 32 soccer fields
To address the growing gap between supply and demand, SK Hynix is constructing a new P&T7 mega fabrication plant. This facility will be equivalent in size to 32 soccer fields and is dedicated to next-generation HBM production. The company expects to complete this massive infrastructure project by 2028.
The current market situation leaves DRAM manufacturers capable of meeting only 60 to 70 percent of total annual demand. Samsung Electronics predicts that market conditions for both DRAM and NAND flash memory will become even more severe in 2027 compared to 2026. This outlook highlights the prolonged nature of the supply tightness affecting the broader memory industry.
IT companies are actively offering cash investments to help expand production lines and acquire ASML EUV equipment. SK Hynix remains cautious about accepting these financial offers. The company aims to avoid becoming dependent on specific buyers and wants to prevent external pressure from lowering chip prices.
SK Hynix stated that current supply constraints make it difficult to accommodate all customer requests. The company has not confirmed a specific launch window for the new P&T7 facility beyond the 2028 completion target. Details regarding specific pricing or availability for future memory products remain unconfirmed.
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