SK Hynix expects memory chip shortages to persist until 2030

According to The Register, SK Hynix has secured long-term supply agreements with 14 customers covering 2027 and 2028. Apple is reportedly among them, potentially giving the iPhone maker greater certainty over its memory supply as competition for components intensifies.

Some customers have apparently expressed interest in extending their agreements, and SK Hynix is open to doing so, citing a pricing mechanism that reflects market conditions within a customer-agreed range. The company says this arrangement allows it to maintain stable profitability while responding flexibly to market changes.

In simple terms, these agreements can help customers secure memory supplies over a longer period, while allowing SK Hynix to adjust prices within agreed parameters as market conditions change. However, long-term supply deals do not necessarily guarantee fixed prices or immunity from higher component costs.

Market research firm TrendForce estimates that laptop prices could rise by as much as 40% amid increasing memory and CPU costs. Separately, JPMorgan reportedly expects Apple’s iPhone memory costs to quadruple from 2027, potentially putting further pressure on the company’s hardware margins or retail pricing.

The supply crunch is already affecting the electronics industry, with companies including Apple, Google, and Xiaomi raising prices on some products. If memory supply continues to lag behind demand, consumers could face more expensive upgrades in the years ahead.

Source: SK Hynix, The Register via 9to5Mac