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SK Hynix CEO Warns 2027 Will Be Memory's 'Worst Year' Ever. Shortages May Outlast the Decade

1 month 3 weeks ago
The CEO of SK Hynix, one of the three largest DRAM producers, predicted to Reuters that the memory industry will see its "worst-ever" supply shortages in 2027, reports the hardware/gaming news site Wccftech: SK Hynix has also forecasted that, given the current market demand, they will fall way short of fulfilling the market demand, and that will continue beyond 2030. The comments from SK Hynix are in line with what Samsung and Micron executives have already said. Samsung has warned of 2027 being the worst year in terms of shortages and that things will continue this way till 2028 and beyond. Meanwhile, Micron has said that the current shortages are only the "first innings" and that both DRAM/NAND supply will be tight, as they are only able to meet 40-50% of the total market demand in the coming years. Heightened demand from AI customers and multi-year agreements further put pressure on the market. The big three DRAM makers have already prioritized premium DRAM segments such as HBM and LPDDR5X, while commodity memory such as DDR5, DDR4, and entry-level LPDDR RAM has taken a back seat. While these have boosted the profits of SK Hynix, Micron, and Samsung, they have devastated the consumer segment, which is facing the worst kind of price hikes that are affecting all sorts of components and platforms, including PCs, Smartphones, Consoles, etc... SK Hynix, like Samsung and Micron, is also preparing to embark on a multi-year and multi-billion dollar expansion plan with new fabs and facilities being laid out across South Korea. SK Hynix is also considering the construction of Fabs in the US, Japan, and Southeast Asia, though the final plans are yet to be cemented. Micron recently started construction of its new facility that will be used for DRAM production. As SK Hynix proudly marks its Nasdaq debut, its CEO's sobering forecast serves as a clear reminder: the memory industry is entering its most challenging chapter yet. With 2027 poised to bring the worst supply shortages in history and tight conditions likely persisting beyond 2030, the AI boom is reshaping the entire semiconductor landscape.

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EditorDavid

WSJ Reports on 'Hard-line Activists Ramping Up for the War With AI'

1 month 3 weeks ago
The Wall Street Journal says "an intense 27-year-old activist who had been leading sit-ins at OpenAI to protest the dangers of AI" was just part of a larger movement. "The Bay Area's AI boom is drawing young disillusioned men and women to join the fight against it. They are upending their lives and leaving behind careers for think tanks, nonprofits and street protest groups." Their cause is now riding a surge of anti-AI backlash. Many Americans are souring on the technology amid mass layoffs, data center sprawl, reports of chatbot-fueled attacks by unstable users and hacking tools that have panicked cybersecurity professionals. Seventy percent of U.S. adults believe AI will cost jobs, and 55% believe it will do more harm than good in their daily lives, according to a recent Quinnipiac University poll. But for activists on the front lines, the driving fear is often more dramatic: human extinction. They cling to dire predictions, like Geoffrey Hinton's. The Nobel laureate, dubbed the "godfather of AI" for his work on artificial neural networks, warns of a 10% to 20% chance AI will wipe out humans. At its most extreme and troubling end, some believe they must stop an AI apocalypse by any means necessary. In April, an unknown assailant fired 13 shots at the home of an Indianapolis councilman, leaving a note: "no data centers." That same month, authorities arrested a 20-year-old Texas college student for an attack on OpenAI CEO Sam Altman's home in San Francisco, and charged him with attempted murder and arson. The student was carrying an anti-AI document with a section on "our impending extinction," according to a federal criminal complaint. He has pleaded not guilty and his lawyers have said his actions appear to have been driven by an "acute mental-health crisis, not a desire to harm."

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EditorDavid