South Korea’s SK Hynix is predicting a decade-long boom for the specialized memory chips that power artificial intelligence, forecasting 30% annual growth for the market through 2030. The company is brushing off concerns about rising price pressures, betting that the AI revolution is just getting started.
At the heart of their optimism is the massive spending from Big Tech. Cloud giants like Amazon, Microsoft, and Google are pouring billions into AI, and SK Hynix says that spending directly translates into demand for its high-bandwidth memory (HBM) chips. “AI demand from the end user is pretty much very firm and strong,” said an SK Hynix executive.
The memory business itself is going through a major change. HBM isn’t a simple commodity anymore. These advanced chips, which are made by stacking memory vertically to save space and power, are now highly customized for specific customers like Nvidia. This means you can’t just swap one company’s chips for another’s, giving SK Hynix a stronger, more stable position in the market.
This upbeat forecast comes as the industry faces potential new U.S. tariffs. President Donald Trump recently said he would impose a 100% tariff on semiconductor chips from countries that do not manufacture in America. However, SK Hynix is likely to be spared. The company is already building an advanced chip packaging plant in Indiana, and its rival Samsung has major facilities in Texas, putting them in the clear if the tariffs are implemented.
