SK Group Chairman Chey Tae-won said memory chip demand could climb at least 50% to 60% next year, while demand for AI semiconductors could rise 60% to 100% from this year, according to South Korea’s Maeil Business Newspaper, as cited in a July 19 report by BlockBeats.
Chey, who also serves as chairman of the Korea Chamber of Commerce and Industry, said suppliers will have very limited capacity to raise output next year. He said the supply-demand gap may widen further, with companies around the world competing to secure memory chip supply.
Expansion plans still fall short
Chey said current capacity expansion plans are still not enough to meet fast-growing demand. He described SK’s approach as building wherever it can, but said equipment availability, staffing and construction timelines continue to limit how quickly capacity can come online.
Prices have moved beyond a normal range
He also said memory chip prices have already moved outside a normal range, adding that PC and smartphone makers cannot keep passing rising costs on to consumers indefinitely.
Chey said semiconductor companies should not limit supply in order to keep prices high. Even if profit margins decline, he said, they should expand output and grow the market. Otherwise, excessively high prices could attract new competitors and prompt intervention from governments.
AI infrastructure shortages remain
Chey also said the AI sector is dealing with shortages in GPUs, memory and power infrastructure, and that new bottlenecks could appear in the future.
Asked about the possibility of an SK hynix stock split, he said the issue has not been sufficiently studied and would require a joint review of the adjustment mechanism for local Korean shares and U.S. depositary receipts.