SK Hynix, a key Apple memory supplier, has warned that RAM and flash memory shortages are likely to last through at least 2030, keeping product prices high. Apple is believed to be one of 14 customers who have locked in priority orders, but the contract does not protect against price increases related to the balance of supply and demand.
The company says AI continues to drive demand and growth, while supply is not keeping pace with market growth. Given the technical difficulty of leading-edge processes and the long lead time required to build new production facilities, SK Hynix expects demand to exceed supply through 2030.
The Register reports that SK Hynix has long-term deals with 14 tech giants for priority orders, allowing market-based price increases. These 14 buyers will collectively purchase more than half of its output during 2027 and 2028. Apple, used to driving supplier negotiations, has been forced to agree to contracts allowing significant price hikes to obtain guaranteed supplies.
Nikkei Asia reports printed circuit boards may be the next component to experience constrained supply. Apple said back in June it was doing its best to mitigate price increases but has so far been unable to do so.
Source: 9to5Mac · Summarized by HeadlinesBriefing