SK Hynix adjusts production strategy to alleviate global RAM and high-bandwidth memory supply constraints.

The ongoing shortage of DDR5 and other general-purpose memory may begin to ease as SK Hynix reportedly shifts its production strategy back toward conventional DRAM. After securing record revenue from AI-focused High Bandwidth Memory (HBM), the company is now slowing its HBM expansion and increasing its focus on general-purpose RAM.

HBM has been the biggest source of growth for the world's leading memory manufacturers—SK Hynix, Samsung, and Micron—as demand for AI hardware surged. The strong demand pushed all three companies to prioritize HBM production, reducing their focus on general-purpose DRAM such as DDR5 and contributing to severe supply shortages.

According to Chosun Biz, HBM now accounts for around 40% of SK Hynix's total revenue. The company has reportedly decided to adjust the expansion of its sixth-generation HBM4 production, despite HBM4 being a key memory technology for AI chips. SK Hynix remains the primary supplier of memory for NVIDIA's upcoming Rubin platform.

Industry sources say SK Hynix is delaying the planned conversion of some HBM3E production lines to HBM4. The company reportedly believes there is no immediate need to accelerate the transition to HBM4 and the future HBM4E generation, given its already-strong position to meet expected demand for NVIDIA's Rubin platform.

Instead, SK Hynix is redirecting resources toward the general-purpose DRAM market, where supply shortages have become severe and profit opportunities have increased. The company wants to strengthen its position in this segment, where competitor Samsung has been generating strong profits. Operating profit margins for general-purpose DRAM are currently higher than those for HBM, making the shift financially attractive without weakening SK Hynix's leadership in AI memory.

The general-purpose DRAM market has faced severe shortages after manufacturers redirected production capacity toward HBM and AI-focused memory. While SK Hynix's strategy change is not expected to significantly reduce DDR5 prices, it could improve memory availability in the OEM, ODM, and server markets. The company previously reported that the average selling price of its DRAM products had increased by more than 60%. Industry estimates suggest that profit margins for general-purpose DRAM could double by the end of the year.

SK Hynix's recent DDR5 supply agreement with Microsoft reflects its continued commitment to the general-purpose DRAM market. Even with increased investment in DDR5 and other conventional memory products, the company is expected to maintain a strong position in the HBM market.