Intel reports that cheap chips for Wildcat Lake series notebooks are sold out due to high demand

SK Hynix has communicated that almost all of its planned production of DRAM and HBM memories for the next three years has already been committed. Furthermore, the manufacturer anticipates that supply will remain below demand until 2030, a scenario driven primarily by increasing investments in artificial intelligence infrastructure.

These projections were disclosed on Wednesday, October 28th, during the presentation of third-quarter financial results. This announcement lowers expectations for component price stabilization until 2028, which had been mentioned by competitor Micron in January.

According to the company itself, the existence of long-term contracts already signed and orders in negotiation significantly restricts the available space to meet new requests in the coming years.

Along with SK Hynix, Samsung and Micron had already sold all the memory chips projected for next year. These three companies hold a considerable share of the global production of these components.

In an official statement, SK Hynix informed that it has established long-term supply agreements with fourteen major clients, including some of the largest global cloud computing service providers. These secured contracts cover more than 50% of the total production capacity expected for the years 2027 and 2028.

The situation becomes even more critical when considering the orders still under discussion. The sum of already signed contracts, whose demands are based on concrete purchasing plans, results in DRAM and HBM volumes that are 'effectively exhausted' until 2029.

The manufacturer also finalized volume and price negotiations for HBM for 2027 and expects an increase in both sales and profitability in this segment. After this sectoral growth, the company surpassed Samsung in market value for the first time in June and achieved a record in its debut on the American stock exchange.

The main pressure factor lies in the expansion of data centers and servers dedicated to AI. HBM memory is used in accelerators to enable the transfer of large amounts of data at very high speeds. SK Hynix reported that customer orders for this type of component exceed more than double the currently available supply.

Although the company is investing in expanding its production capacity through new facilities, it emphasizes that, following industry standards, it takes several years for a new factory to start operating, implying that demand will remain higher than supply until 2030.

Meanwhile, the end consumer of electronics must continue to feel the impact of this focus on AI in their spending. DRAM and NAND memories, produced by the three cited companies, are used in computers, smartphones, televisions, smart appliances, and even vehicles equipped with more sophisticated digital systems.

In the smartphone segment, for example, there have been recent increases in the lines of Samsung and Apple, which may intensify next year. Lenovo points out that these companies were preparing since the previous year, and there is no guarantee that prices will return to levels observed in previous periods.

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