Chey Tae-won, the chairman of SK Group, has issued a warning that the worldwide scarcity of AI memory chips could soon evolve into a geopolitical challenge. With demand significantly surpassing supply, he expressed concerns that countries might begin to view access to these advanced chips as crucial to economic security. This could potentially lead to international pressure tactics for securing chip supplies.
Chey pointed out that the demand from customers for AI memory chips is projected to increase by 60% to 100% by 2027 compared to current levels. However, the expansion of production capacity has not kept pace with this rising demand. He highlighted that high-bandwidth memory (HBM), essential for AI processors, is experiencing particularly acute shortages.
In response to this pressing demand, SK hynix is ramping up its investments in new manufacturing facilities within South Korea. The company is also exploring possibilities for establishing production sites abroad, including in the United States. Chey underscored the importance of swiftly expanding production capabilities to safeguard South Korea’s prominent position in the semiconductor sector.
Furthermore, Chey cautioned that failure to quickly boost production could result in prolonged elevated prices. Such a scenario might attract new competitors into the market, potentially creating disruptions in the global semiconductor landscape. By accelerating investments and considering international expansion, SK hynix aims to mitigate these risks and sustain its competitive edge.