SK Group Chairman Chey Tae-won has issued a stark warning about the growing global shortage of AI memory chips, suggesting it could become a geopolitical concern as the gap between demand and supply widens. He highlighted that governments worldwide are increasingly viewing access to advanced memory chips as crucial to economic security, with potential diplomatic pressures arising to ensure a steady supply.
Chey pointed out that by 2027, customer demand for AI memory chips is projected to surge by 60% to 100% compared to current levels. Despite this soaring demand, the expansion of production capacity remains insufficient. Of particular concern is the shortage of high-bandwidth memory (HBM), a vital component for AI processors, which is experiencing the most severe deficits.
In response to these challenges, SK hynix is ramping up investments in new manufacturing facilities within South Korea and exploring potential sites abroad, including in the United States. Chey emphasized the necessity of swiftly expanding production capabilities to uphold South Korea’s leading position in the semiconductor industry. This move is also aimed at preventing extended periods of high prices, which could invite new competitors and potentially disrupt the global market.
Chey’s comments underscore the strategic importance of securing a stable supply of AI memory chips, as nations increasingly intertwine technological capabilities with national security. As the industry grapples with these shortages, the push for increased production reflects broader concerns over maintaining technological dominance and economic stability in an increasingly competitive landscape.