SK Hynix: Memory Shortage Will Last Until 2030, Prices Will Rise

Memory shortage set to last until 2030: SK hynix warns of prolonged price increases

The global shortage of DRAM and NAND memory, driven by the rapid rise in demand from the artificial intelligence industry, will continue until at least 2030. SK hynix, a key supplier of components for Apple, predicts that demand will outstrip supply over the coming years, inevitably leading to further price increases for electronic devices.

This means consumers should prepare for the continued upward trend in the cost of computer components, smartphones, and other gadgets. The current situation is already forcing manufacturers, including Apple, to review their pricing policies.

Artificial intelligence as the main driver of the shortage

The growing demand for memory is explained not only by the needs of major technology corporations developing and deploying AI-based solutions, but also by the active interest of ordinary businesses and governments. They are also building powerful computing systems of their own, which require significant amounts of high-performance memory.

At the same time, manufacturers are facing difficulties in rapidly expanding production capacity. Building new factories requires significant investment and a long time, while implementing advanced chip manufacturing technologies involves serious technical challenges.

Long-term agreements do not guarantee stable prices

SK hynix has already signed priority supply agreements with 14 major technology companies, among which, it is assumed, is Apple. These contracts will cover more than half of the company’s production capacity in 2027 and 2028. Some customers have already expressed a desire to extend these agreements.

However, such contracts do not protect buyers from price increases. They allow for adjustments in component costs depending on market conditions. This means that even major customers may face rising component expenses.

Components are getting more expensive: memory prices have surged fivefold

The most noticeable consequences of the shortage have already been felt in the personal computer components market. RAM prices have increased fivefold: a 32 GB DDR5 kit that cost around $80-100 in 2024-2025 can now reach $500. This has led to higher prices for graphics cards and SSDs.

Experts predict that the era of cheap PCs and smartphones is coming to an end. In addition to the memory shortage, there may be supply constraints for printed circuit boards (PCB), which will further increase pressure on electronics manufacturers.