Micron, SanDisk, and SK hynix Investors Should Fear One Thing: Elon Musk - Yahoo Finance

As artificial intelligence drives unprecedented demand for high-performance memory, the semiconductor industry faces a structural underinvestment in manufacturing capacity. Elon Musk has repeatedly em... Read original →

The AI-driven surge in HBM demand has exposed a structural deficit in global memory manufacturing capacity. While Micron and SK hynix enjoy short-term stock gains, their delayed expansions—Micron’s New York fab not ramping until 2028—fail to address immediate shortages. Musk’s Terafab aims for vertical integration but faces 3nm EUV and advanced packaging yield hurdles, pushing meaningful output beyond 2030. This forces TSMC (Taiwan, China) to accelerate CoWoS capacity and compels NVIDIA to redesign architectures around constrained memory bandwidth. U.S. CHIPS Act delays and export controls inflate fab costs by over 30% and fragment supply chains. In response, Samsung and SK hynix will likely deepen their U.S.-Japan-Korea manufacturing triangle, while Micron may lock in non-mainland China OSAT partners. Over the next 12–24 months, persistent HBM3E/HBM4 shortages will drive customers to prepay for allocation, shifting pricing power decisively toward integrated players.