SK Group Chairman Warns of Memory Shortage Driving Up Prices

SK Group Chairman Chey Tae-won, in interviews including CNBC, has warned of a worsening memory deficit next year and rising prices for all devices incorporating memory. He describes the supply-demand imbalance literally as 'a situation reminiscent of wartime.' He says the memory shortage will peak next year, and clients of subsidiary SK hynix are already asking for double the current supply, but expanding production capacity takes four to five years, leaving manufacturers unable to meet demand proportionally. Demand will grow across segments, from smartphones to PCs and wearables, as the AI boom increases the memory requirements of end devices, with many AI agents running on various hardware platforms needing more memory. Chey acknowledges that rising memory prices fuel overall inflation, affecting everyone. He notes that site selection for new plants depends on developing infrastructure with hundreds of companies supplying materials and chemicals. To hedge against demand downturns, SK Group is pursuing long-term contracts, exploring memory chip rental, and creating joint ventures, leveraging SK Innovation and SK Telecom to build data centers with partners. He advises investors not to sell SK shares, citing long-term growth prospects.