Chey Tae-won, Chairman of SK Group, has raised alarms over the growing global shortage of AI memory chips, suggesting it might soon evolve into a geopolitical concern. As demand for these chips continues to outstrip supply, Chey remarks that countries might begin to view access to advanced memory technology as an integral part of their economic security strategies. The situation could lead to increased diplomatic pressure among nations to secure their own chip supplies.
According to Chey, the demand for AI memory chips is projected to rise significantly, with customers expected to require 60% to 100% more by 2027 compared to current levels. This surge in demand comes at a time when the ability to increase production capacity remains constrained. Particularly affected is high-bandwidth memory (HBM), which is crucial for AI processors and currently experiencing the most acute shortages.
In response to these challenges, SK hynix, a key player in the semiconductor industry, is ramping up its investments in new manufacturing facilities within South Korea. Additionally, the company is considering potential production sites abroad, including in the United States, as part of its efforts to meet the rising demand. Chey underscores the importance of rapid expansion in production capacity to uphold South Korea’s prominent position in the semiconductor market.
Chey warns that without swift action, the persistent shortages could lead to sustained high prices, which might entice new competitors into the market, potentially disrupting the global semiconductor landscape. Thus, expanding production is not only crucial for maintaining industry leadership but also for stabilizing market prices and ensuring a balanced global supply chain.