SK Group Chairman Chey Tae-won has highlighted the growing concern over the global shortage of AI memory chips, warning that it could soon evolve into a geopolitical issue. As the demand for these chips continues to surge, it is surpassing the available supply, prompting governments to regard access to advanced memory technology as a critical aspect of economic security. Chey suggests that this could lead to increased international pressure as countries strive to secure their own supplies.
Chey pointed out that customers are projected to seek between 60% to 100% more AI memory chips in 2027 compared to the current year. Despite this rising demand, the capacity for new production remains constrained. He specifically noted that high-bandwidth memory (HBM), a vital component used in AI processors, is experiencing the most severe supply shortages. This imbalance between supply and demand raises concerns about future availability and pricing.
In response to this pressing issue, SK hynix, a subsidiary of SK Group, is ramping up its investments in expanding manufacturing capabilities within South Korea. Additionally, the company is exploring potential locations abroad, including the United States, to boost production. Chey emphasized the importance of rapidly increasing production capacity to sustain South Korea’s leading position in the semiconductor industry.
Chey also warned that if production does not keep pace with the escalating demand, it could lead to prolonged high prices. Such a scenario might incentivize new competitors to enter the market, potentially disrupting the global semiconductor landscape. Therefore, SK hynix’s strategic investments aim not only to meet immediate needs but also to stabilize the market and maintain competitive advantage.
