SK Group chairman: Wafer shortage could persist until 2030
SK Group Chairman Chey Tae-won said the global shortage of semiconductor wafers could last until 2030, as demand driven by artificial intelligence continues to outpace supply, according to Reuters.
Chey made the comments to reporters on the sidelines of Nvidia GTC Conference in San Jose, California, Reuters reports.
“AI actually wants to have a lot of HBM, and once you make the HBM… we have to use a lot of wafers,” Chey said, explaining the increasing demand for wafers used in advanced memory production.
He added that expanding wafer supply would take time, estimating that it could take four to five years to build additional capacity. “The current shortage could continue until 2030, so we expect more than a 20% shortage of the wafers,” Chey said, according to Reuters.
SK Group's SK hynix is the largest supplier of high-bandwidth memory (HBM) used in AI systems and holds about 57% of the HBM market, according to market research firm Counterpoint Research. The company also has a roughly 32% share of the global DRAM market, making it the world’s second-largest DRAM supplier.
Chey said SK Hynix is considering a potential US American Depositary Receipt (ADR) listing to broaden its global investor base. He also indicated that the company’s CEO may announce plans to stabilise DRAM prices, Reuters reports.
When asked about expanding manufacturing capacity in the United States, Chey said establishing overseas semiconductor plants requires sufficient power, water resources, construction conditions and engineering talent, making rapid expansion difficult. For now, the company remains focused on production in South Korea, according to Reuters.
Chey also said tensions in the Middle East have increased energy costs, prompting the group to explore alternative energy sources, Reuters reports.
