Despite record earnings, SK Hynix faces mounting challenges in meeting explosive demand for its HBM memory chips:
Supply Chain Bottlenecks
- 18-month lead times for ASML’s EUV lithography machines
- Specialty gas shortages from Ukraine conflict
- 94% utilization at Korean fabs (no spare capacity)
Customer Allocation Strategies
- Nvidia receives 65% of HBM3E output
- Microsoft/Amazon get priority for next-gen HBM4
- Automakers like Tesla placed on 12-month waitlists
“Every wafer is spoken for through 2026,” admitted COO Lee Kang-Wook, noting the company is:
- Running factories 24/7 with no maintenance downtime
- Air freighting chips from Korea to bypass port delays
- Implementing 3-shift “ghost crews” for rapid scaling
