SK Group Chairman Chey Tae-won has come out with unusually direct comments on memory pricing, calling current semiconductor prices "abnormally high" and warning that the situation risks creating what he termed "chipflation", where rising chip costs push up finished product prices for consumers. Speaking at the Korea Chamber of Commerce and Industry Summer Forum in Jeju on July 15, Chey argued that supply needs to increase even if it means lower margins for semiconductor companies. His reasoning: AI companies can absorb higher costs, but PC and smartphone makers have a limited ability to pass those costs on to individual consumers. If prices keep climbing, the market shrinks and new players move in, an outcome he sees as bad for the South Korean semiconductor industry in the long term. The struggle is real, as is the threat from new competitors, as shortages at Samsung, SK hynix, and Micron have forced major PC OEMs to lock in DRAM supply deals with the Chinese memory producer CXMT.
On the supply side, the picture doesn't look like it's getting better soon. Chey predicted AI semiconductor demand could surge 60-100% next year, while production from major suppliers will not increase significantly. Since AI-related demand now accounts for over half the total semiconductor market, he expects overall demand to rise by at least 50-60% against a supply that is not keeping pace. "No company is significantly increasing supply next year; it's so dire I don't know if I should describe it as chaotic," he said. According to The Chosun Daily, Chey confirmed that SK hynix is looking at building a semiconductor factory in the United States. These plans could significantly expand SK hynix's US footprint. The company is already investing approximately $4 billion to build advanced packaging R&D facilities and HBM production lines in West Lafayette, Indiana. Construction began in 2026 and the site is scheduled to be operational by the second half of 2028. However, he also said that the company is currently looking for possible locations globally, prioritizing sites based on speed, scale and feasibility. No specific location or timeline was given.