SK Group Chairman Chey Tae-won warned Wednesday that the global memory chip shortage has grown severe enough to draw government intervention. He spoke at a press briefing during the Korea Chamber of Commerce and Industry’s Jeju Forum. Consequently, Chey cautioned that Seoul will likely face similar pressure from foreign governments soon.
Indeed, Chey argued that SK hynix must accelerate capacity expansion both domestically and abroad immediately. He described current memory chip prices as abnormal and warned prolonged highs would invite competitors. Moreover, customers have requested 60 to 100 percent more AI memory chip supply for 2027. Since AI now drives over half of total semiconductor consumption, demand keeps climbing rapidly. However, supply simply cannot keep pace, as no company has meaningful capacity arriving next year.
Furthermore, the shortage appears most severe within high-bandwidth memory, which pairs with AI accelerators. SK hynix held 58 percent of the global HBM market by revenue in early 2026. Meanwhile, Micron and Samsung each trailed significantly behind at 21 percent market share. This imbalance, Chey explained, has triggered near-chaotic lobbying from corporate customers and governments alike. Therefore, foreign governments increasingly treat memory chip access as a matter of economic security.
Additionally, Chey warned that sustained high prices would ultimately damage Korean chipmakers themselves long-term. He pointed to Tesla CEO Elon Musk’s stated interest in chip manufacturing as an early warning sign. SK hynix is already accelerating domestic expansion through its Yongin cluster and Cheongju facility conversion. The company also plans a larger southwest Korea expansion jointly with Samsung Electronics.
Meanwhile, SK hynix continues reviewing potential fab sites worldwide, including locations across the United States. Chey dismissed pressure from US Commerce Secretary Howard Lutnick regarding reshoring demands as nothing new. Going forward, the company’s only confirmed US site remains its Indiana packaging facility from 2024.
