SK hynix CEO Kwak said the AI memory market would remain strong through at least 2030 and that the company would be positive about potential sites for additional investment in the US, depending on the conditions. The company disclosed for the first time that it plans to begin mass production of HBM4E at its West Lafayette, Indiana plant in the second half of 2029.
South Korea’s SK hynix expects demand for artificial intelligence (AI) memory to remain high through 2030. The CEO said there were no clear signs of an economic downturn at present and expressed the view that the HBM market was unlikely to face a period of sharply falling demand in the years ahead.
It was explained that HBM has the distinctive feature of being developed jointly by customers and semiconductor manufacturers, making market forecasts less difficult than during past downturns. While the pace of demand growth could slow or stall, the company indicated that demand was unlikely to fall sharply even during a downturn.
Regarding potential sites for additional investment in the US, the company said no location had been finalized, but it would be positive about sites able to offer favorable conditions, including electricity, water and subsidies, and create new business opportunities with customers. It expressed the same view regarding the potential construction of additional front-end facilities in the US.
As a specific production plan for the Indiana plant, the company said it would begin mass production of HBM4E in the third quarter of 2029, with annual production capacity expected to reach several hundred thousand wafers. Foundation work is under way, and the cleanroom is scheduled for completion by October 2028. The company said the project was expected to create more than 7,000 jobs.