SK Hynix memory chip shortage fuels global market volatility

South Korean memory‑chip giant SK Hynix warns that the global shortage of high‑bandwidth memory (HBM) – driven by soaring AI data‑center demand – is unlikely to ease until after 2030. CEO Kwak Noh‑jung said the market will face “unprecedented supply shortages” in 2027, and analysts at UBS and Bank of America project continued undersupply through 2028. The shortage has pushed up prices for consumer NAND products such as SD and CFexpress cards, even though they do not use HBM.

The scarcity is also affecting equities. SK Hynix’s shares jumped nearly 13% in Seoul on July 15 after a U.S. CPI surprise lowered Treasury yields, and the company’s recent U.S. ADR listing raised $26.5 billion – the largest foreign share sale on the Nasdaq. Earlier, the stock rebounded 8% on a HSBC recommendation after a sharp two‑day fall triggered by a surprise interest‑rate hike in South Korea. However, broader Korean market indices have been volatile, with the KOSPI slipping amid Middle‑East tensions and tighter financing conditions.

Investors worldwide now watch the Korean market closely. Fund managers in London, New York and Tokyo treat Seoul’s $4 trillion equity market as a key barometer for AI‑related chip risk, noting that the correlation between the KOSPI and the Nasdaq‑100 has risen to historic levels. SK Hynix’s dominant 58% share of global HBM supply and its plans to expand production in the United States and domestically underscore the strategic importance of memory chips to both corporate profitability and national competitiveness.