As global demand for AI memory chips continues to surge, SK Group Chairman Chey Tae-won has cautioned that this shortage may evolve into a geopolitical challenge. Chey highlighted the growing trend of governments viewing access to these advanced chips as crucial for economic security, potentially leading to international pressure to secure supplies.
Chey pointed out that by 2027, customers are projected to require between 60% and 100% more AI memory chips than they do this year, yet the expansion of production capacity is not keeping pace. He identified high-bandwidth memory (HBM), a vital component for AI processors, as experiencing the most acute supply constraints.
To meet the increasing demand, SK hynix is ramping up its investments in new manufacturing facilities within South Korea. The company is also considering expanding its operations to international locations, including the United States. Chey underscored the importance of swiftly boosting production capabilities to ensure South Korea maintains its leadership in the semiconductor sector.
Chey warned that failing to expand production could lead to prolonged high prices, which might entice new competitors and disrupt the global market. The swift expansion is seen as critical not only for maintaining market leadership but also for stabilizing prices and ensuring a steady supply of AI memory chips.