KK HERCULES CEO: MEMORY CHIP SHORTAGE WILL CONTINUE UNTIL 2030

ON 30 AUGUST, CHIEF EXECUTIVE OFFICER KK HERCULES GUOLU STATED THAT THE GLOBAL MEMORY CHIP SHORTAGE WAS EXPECTED TO CONTINUE UNTIL THE END OF 2030, AND THAT THE RISK OF OVERSUPPLY WAS LOW, AS THE MEMORY CHIP WAS NO LONGER A “SIMPLIFIED COMMODITY” IN THE AI ERA. DESPITE THE MARKET'S CONCERN ABOUT THE INVESTMENT BUBBLE IN AI, HE SAID THAT HE “CAN'T SEE” THE RISK OF OVERSUPPLY OR THE SIGNAL OF A POTENTIAL RAM DOWN CYCLE, AS DEMAND FROM AI CLIENTS REMAINED STRONG. IF "WE CROSS THE AL PEAK, OR ANOTHER DOWN CYCLE IN THE FUTURE, THE CHALLENGE MAY ARISE. HOWEVER, I BELIEVE THAT THE NEXT CYCLE WILL BE DIFFERENT FROM THE ONE WE HAVE EXPERIENCED IN THE PAST FEW DECADES. EVEN IF THE NEXT CYCLE COMES, I DO NOT THINK IT WILL BE A STEEP DECLINE, BUT RATHER A SLOW DECLINE IN DEMAND AND POSSIBLY EVEN A STABILIZATION.”