Chairman Chey Tae-won of SK Group warned that the imbalance in the chip supply chain could last until 2030, citing the rapid expansion of AI-driven applications as a key factor behind the sustained pressure.
Speaking on the sidelines of Nvidia GTC Conference in San Jose, California, Chey noted that the production of advanced memory chips—particularly high-bandwidth memory (HBM)—requires a significant volume of semiconductor wafers, exacerbating existing supply constraints.
SK Group’s chipmaking arm, SK Hynix, is currently the leading supplier of HBM chips to Nvidia and holds a dominant position in the segment. The company accounts for roughly 57 per cent of the global HBM market and about 32 per cent of the DRAM market, making it the world’s second-largest DRAM producer.
Chey explained that scaling wafer production capacity is a long-term process, requiring at least four to five years of investment and development. As a result, the industry could face a wafer shortfall exceeding 20 per cent through the end of the decade.
The anticipated shortage comes amid intensifying global demand for AI infrastructure, where HBM chips are essential for handling large-scale data processing tasks. Chey added that the company is exploring strategies to stabilise DRAM prices, with further details expected to be announced by SK Hynix’s leadership.
Beyond supply concerns, SK Hynix is also considering a potential American depositary receipt (ADR) listing in the United States, a move aimed at broadening its investor base and increasing its exposure to global capital markets.
However, Chey cautioned that expanding semiconductor manufacturing capacity overseas—particularly in the US—remains challenging. He cited critical requirements such as reliable power supply, water resources, construction conditions and access to skilled engineering talent, noting that such infrastructure cannot be rapidly deployed on demand. For now, the company continues to prioritise production in South Korea.
He also highlighted external pressures affecting operations, including rising energy costs linked to geopolitical tensions in the Middle East. These challenges have prompted the group to explore alternative energy sources to support its manufacturing processes.
Shares of SK Hynix rose 2.7 per cent in early trading in Seoul, slightly outperforming gains in the broader KOSPI benchmark index, which was up 2.4 per cent.