"NO ONE KNOWS HOW LONG THE SHORTAGE WILL LAST" - FULL $SKHY CEO INTERVIEW SK Hynix CEO Kwak No-jung predicted that the memory semiconductor supply shortage will continue until the end of 2030, and that there will not be a sharp decline in demand thereafter. Regarding plans for additional investment in the U.S., he reaffirmed the existing stance that investment is possible anywhere sufficient support is provided. CEO Kwak gave this response to a question regarding how long he expects the memory supply shortage to continue during a press conference following the groundbreaking ceremony for an advanced packaging production base for AI memory at Purdue University’s Holloway Gymnasium in West Lafayette, Indiana, on the 27th (local time). "No one knows how long the shortage will last, but there are no clear signs of a downturn," said CEO Kwak. "We expect the shortage to continue until the end of 2030." He further explained, "I believe the next downturn will be different from the ones we have experienced over the past few decades. While adjusting production volumes appropriately is not easy, our business model for AI is transitioning from 100% standard products to partially customized or fully customized products." In the case of AI memory, since it is custom-made for client systems, demand forecasting is easier and ties with manufacturers are stronger compared to the past. Consequently, the explanation is that even if a downturn occurs, the damage will not be as severe as in the past." Even if a downturn hits, I believe demand will slow down slightly or remain at a stable level rather than plummeting," CEO Kwak said. "Therefore, I am not concerned about the period after 2030. I believe supply and demand will balance out, and the entire AI industry will grow together." When asked about plans to invest in additional semiconductor production facilities in the U.S., he replied, "We are open to any location where sufficient resources, such as water, electricity, talent, and subsidies, are provided," adding, "Since nothing has been finalized yet, I cannot discuss specific details or directions." Last month, SK Group Chairman Chey Tae-won stated, "If there is a suitable place, it does not matter whether it is the United States or anywhere in the world," expressing the same position. However, CEO Kwak specifically added, "I hope to be able to deliver good news to the U.S. AI industry next time." When asked if he felt pressured by the Donald Trump administration's demand for investment in memory semiconductor front-end process facilities, he replied, "Our current situation is very well known through media reports." He reiterated, "We are reviewing any location in the world as long as it offers customers and new business opportunities," adding, "If the conditions presented by the other party are met, we would like to deliver another piece of good news to the AI industry in the U.S. or other countries, just like at today's event." Regarding whether to continue maintaining its stake in the Japanese NAND flash company Kioxia (formerly Toshiba Memory), he answered, "There are no concrete or confirmed plans yet." He further explained, "However, just as we contribute to the U.S. AI industry, we also intend to contribute to the Japanese semiconductor industry. Since we are investing in Japan just as we have in the U.S., we view it as our responsibility in some respects to contribute to that local community and the nation. Although there are no confirmed plans, we are carefully examining how we can grow the market together." Source: newsis $MU $SNDK $KXIAY