SK Group Chairman: Demand for storage chips is projected to grow by at least 50% to 60% next year, with the supply-demand gap likely to further widen.
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According to South Korea’s Maeil Business Newspaper, SK Group Chairman and Korea Chamber of Commerce and Industry Chairman Choi Tae-won stated that driven by the expansion of artificial intelligence (AI), demand for AI semiconductors is projected to rise by at least 60% to 100% next year compared to this year, while overall memory chip demand will also grow by at least 50% to 60%. Choi noted that the additional supply each company can increase next year is very limited, so the supply-demand gap may widen further, with global firms currently scrambling for memory chip supplies. He added that existing expansion plans are still insufficient to meet the rapidly growing demand; SK’s current strategy is “build wherever possible”, but equipment, personnel and construction timelines continue to restrict capacity release. Choi also pointed out that current memory chip prices have deviated from normal ranges, and PC and smartphone manufacturers cannot keep passing cost increases to consumers. Semiconductor enterprises should not limit supply to maintain high prices; even if their profit margins decline, they should expand output and grow the market. Otherwise, excessive prices may attract new competitors and trigger government interventions. He further stated that the AI industry is facing shortages of infrastructure such as GPUs, storage and power, and new bottlenecks may emerge in the future. Regarding the possibility of a stock split for SK Hynix, Choi said the plan has not been fully studied, and adjustments for Korean domestic stocks and American depositary receipts (ADRs) need to be evaluated together.
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