SK Group Chairman Chey Tae-won has raised concerns about the potential for the ongoing global shortage of AI memory chips to become a geopolitical issue. As demand for these critical components continues to surpass supply, Chey highlighted the growing tendency of governments to view access to advanced memory chips as a key aspect of economic security. He warned that countries might soon start exerting pressure on others to ensure a steady supply of these chips.
The demand for AI memory chips is predicted to rise significantly, with customers requesting between 60% and 100% more by 2027 compared to current levels. However, the expansion of production capacity has not kept pace with this demand. Chey pointed out that high-bandwidth memory (HBM), which is crucial for AI processors, is experiencing particularly severe shortages.
In response to the rising demand, SK hynix is taking proactive steps to increase its production capabilities. The company is fast-tracking investments in new manufacturing facilities within South Korea and is also considering potential sites abroad, including in the United States. Chey emphasized the importance of swiftly expanding production to sustain South Korea’s leading position in the semiconductor industry.
Failing to address the shortage quickly could result in prolonged high prices, which might attract new competitors and potentially disrupt the global market. Chey’s statements underscore the significance of scaling up production facilities to meet future demand and maintain market stability. The strategic approach aims to not only support South Korea’s semiconductor dominance but also to mitigate the risk of escalating geopolitical tensions over chip supplies.