SK Group Expects 50% to 60% Growth in Memory Chip Demand Next Year

SK Group Chairman Choi Tae-won stated that driven by the expansion of AI, the demand for AI semiconductors is expected to grow by 60% to 100% next year, with overall memory chip demand projected to increase by at least 50% to 60%. Choi pointed out that the supply increase from various companies next year will be limited, and the supply-demand gap may further widen, as global enterprises are competing for memory chip supplies. He emphasized that the current expansion plans are insufficient to meet the rapidly growing demand, and SK's current strategy is to "build wherever possible," but equipment, personnel, and construction cycles are limiting capacity release. Choi also mentioned that current memory chip prices have deviated from the normal range, and PC and smartphone manufacturers cannot continuously pass on rising costs to consumers. He believes that semiconductor companies should not restrict supply to maintain high prices; even if profit margins decline, they should expand production, or else excessively high prices may attract new competitors and trigger government intervention. Additionally, the AI industry is facing shortages in infrastructure such as GPUs, memory, and power, which may lead to new bottlenecks in the future. Regarding the possibility of SK Hynix splitting its stock, Choi stated that it has not been thoroughly studied and needs to assess the adjustment mechanisms between local Korean stocks and American Depositary Receipts.