SK Group Chairman Chey Tae-won has raised concerns that the growing global demand for artificial intelligence (AI) memory chips may soon become a geopolitical issue. He highlighted that as the need for these advanced chips exceeds supply, nations might start viewing access to them as a critical matter of economic security, potentially leading to international pressure to secure chip supplies.
Chey pointed out that by 2027, customer requests for AI memory chips are projected to increase by 60% to 100% compared to current figures. However, he noted that the expansion of new production capacity is not keeping pace with this rising demand. High-bandwidth memory (HBM) chips, which are essential for AI processors, are particularly experiencing acute shortages.
In response to these challenges, SK hynix, the semiconductor arm of SK Group, is ramping up its investment in new manufacturing facilities within South Korea. Moreover, the company is exploring potential overseas sites for expansion, including locations in the United States. Chey underscored the importance of swiftly enhancing production capabilities to preserve South Korea’s leading position in the semiconductor sector.
Chey also warned that if production is not expanded quickly enough, it could lead to sustained high prices for AI memory chips. Such a scenario might attract new competitors, potentially disrupting the existing global market dynamics. Expanding production is deemed vital not only to meet the surging demand but also to stabilize prices and maintain market balance.