SK Group Chairman Chey Tae-won has highlighted the potential for the global shortage of AI memory chips to become a geopolitical concern as demand increasingly surpasses supply. He pointed out that governments are beginning to view access to advanced memory chips as a critical aspect of economic security, which could lead to international pressure to secure these vital components.
Chey explained that the need for AI memory chips is expected to rise dramatically, with customer requests projected to increase by 60% to 100% in 2027 compared to current levels. Despite this surge in demand, there is limited new production capacity available. The most significant shortages are being seen in high-bandwidth memory (HBM), which is crucial for AI processors.
To tackle the rising demand, SK hynix, a subsidiary of SK Group, is ramping up investments to expand manufacturing facilities within South Korea and is also considering establishing operations in international locations, including the United States. Chey underscored that swiftly increasing production capabilities is vital for South Korea to maintain its leading position in the semiconductor industry.
Chey also warned that if production does not expand quickly enough, prolonged high prices could emerge, potentially inviting new competitors and disrupting the global market. Ensuring a steady supply of these crucial components is therefore essential not only for economic stability but also for maintaining geopolitical balance.
