SK Hynix CEO Says DRAM and HBM Capacity Nearly Sold Out Through 2029
SK Hynix CEO Kwak Noh-jung announced that the company's DRAM and HBM memory capacities are nearly sold out through 2029 due to surging AI-driven demand. This unprecedented demand visibility is backed by finalized Long-Term Agreements (LTAs) and advanced customer discussions. This trend indicates that the global AI hardware supply chain will face tight memory constraints for years, potentially limiting the expansion speed of AI data centers worldwide. It highlights a structural shift where AI infrastructure investments are broadening beyond a few tech giants to encompass enterprises and nations. SK Hynix reported massive third-quarter financial growth with revenues reaching 104.62 trillion KRW and net profits hitting 39.53 trillion KRW. The company projects that supply will continue to lag behind demand until 2030 because advanced manufacturing processes are increasingly difficult and building new production facilities takes considerable time.
## BACKGROUND
High Bandwidth Memory (HBM) is a specialized high-performance computer memory used with graphics processors to accelerate heavy artificial intelligence workloads. Long-Term Agreements (LTAs) are binding contracts signed between suppliers and downstream manufacturers to guarantee product supply and fixed pricing during periods of tight market capacity.