[Westrapiet, Indiana, U.S.A. = E-Daily Seong Joowon Correspondent] Kwak No-jeong, President and CEO of SK hynix, predicted that the long-standing boom-and-bust cycle of the memory semiconductor market will undergo a structural shift due to the spread of artificial intelligence (AI). He believes that as memory evolves from a commodity product to a customer-tailored product, demand forecasting is becoming easier, and the relationship between customers and semiconductor companies is growing even closer. He also predicted that the current memory supply shortage will continue for the time being.

In an interview with reporters immediately following the official groundbreaking ceremony for the Indiana Fab held in West Rapier, Indiana, on the 27th (local time), President Kwak responded to a question about how long the memory supply shortage is expected to last by saying he anticipates the shortage will continue. However, he did not specify a precise timeframe.
In particular, he predicted that even if a memory downturn occurs in the future, its nature will differ from past downturns. “Over the past few decades, the memory industry has experienced several downturns,” President Kwak explained, adding, “At that time, the memory business was virtually 100% centered on off-the-shelf products.” He noted that since it was difficult to accurately predict market demand, it was also challenging to maintain an appropriate production volume.
In the AI era, the situation is changing. President Kwak explained, “The memory business model is shifting from 100% off-the-shelf products to partially or fully customized products.” This is because, to maximize the performance of AI systems, customers and memory manufacturers must collaborate closely starting from the development stage of next-generation products.
He predicted that these changes will make it easier to forecast market demand than in the past and will further strengthen the relationship between customers and semiconductor companies. Accordingly, President Kwak believes that even if a downturn occurs in the future, the decline in demand may be gradual, or demand may even remain stable. However, he added that it is difficult to predict market conditions beyond that point.
In fact, SK hynix is experiencing stronger demand for AI and memory than it did two years ago. Comparing the current situation to when SK hynix first announced its 2024 investment plan in Indiana, President Kwak stated, “Demand from the market and from customers has become much stronger.”
SK hynix(000660)SK Hynix’s decision to establish its first U.S. high-bandwidth memory (HBM) production hub in Indiana is also a strategy to respond to these changes. In his speech at the groundbreaking ceremony that day, President Kwak emphasized that in the AI era, it is essential to develop customized memory solutions optimized for customer systems and to enhance the performance of both memory and the entire system through advanced packaging.
SK hynix will transport state-of-the-art HBM wafers manufactured in Korea to Indiana, where they will undergo advanced packaging and testing before being supplied to U.S. customers. The fab will also house advanced packaging research and development (R&D) capabilities, enabling the company to collaborate with customers on next-generation packaging technologies and to develop and validate new memory solutions.
President Kwak emphasized the importance of an ecosystem that connects customers, universities, partners, and the local community, noting that “innovation in the AI era is impossible through the efforts of a single company alone.” Through its investment in Indiana, SK hynix aims to establish a cutting-edge memory supply chain in the U.S. and position itself as a key partner in the growth of the U.S. AI industry.