SK Hynix Sees Chip Order Surge Ahead of Possible U.S. Tariffs, Eyes AI Memory Boom

SK Hynix, the world’s second-largest memory chipmaker, revealed that customers are rushing orders in anticipation of potential U.S. semiconductor tariffs. Speaking at the company’s annual shareholder meeting, Lee Sang-rak, Head of Global Sales and Marketing, attributed the recent favorable market conditions to this "pull-in" demand and declining inventory levels among clients.

Although the short-term outlook has improved, the company remains cautious. In January, SK Hynix predicted a 10–20% drop in DRAM and NAND flash memory shipments for Q1 compared to the previous quarter.

Concerns were amplified after U.S. President Donald Trump announced plans to impose tariffs of up to 25% on imported semiconductors. According to a recent Nomura report, fears of April tariffs have driven early inventory transfers to the U.S., though the actual implementation remains uncertain. If imposed, these tariffs could raise prices for electronics, possibly dampening consumer demand.

Despite this, SK Hynix remains bullish on its high bandwidth memory (HBM) chip business, projecting explosive growth driven by surging data center investments. CEO Kwak Noh-Jung reaffirmed January’s forecast that HBM sales would more than double in 2024. As a key supplier to Nvidia, SK Hynix is well-positioned to benefit from ongoing AI infrastructure expansion.

While some skepticism emerged over AI chip demand—particularly after China’s DeepSeek claimed to develop competitive AI models at lower costs—Kwak sees the development as a positive. “We believe this will support long-term demand for AI memory, especially high-performance HBM,” he said.

Shares of SK Hynix slipped 2.1% in morning trade, underperforming the KOSPI’s 0.9% decline, as investors weighed the impact of potential tariffs and shifting global dynamics.