Quick Summary
- Chairman Chey Tae-won of SK Group predicts the worldwide memory chip shortage will extend through approximately 2030.
- Artificial intelligence demand for high-bandwidth memory (HBM) is fueling the scarcity, requiring substantial wafer quantities for production.
- Current wafer supply trails demand by over 20% throughout the semiconductor industry.
- SK Hynix commands a 57% market share in HBM and 32% in worldwide DRAM markets.
- The company is exploring the possibility of an American Depository Listing on US exchanges.
SK Hynix’s Chairman Chey Tae-won captured industry attention Monday when he informed journalists that the worldwide memory chip scarcity might continue for an additional four to five years. His remarks came during Nvidia’s GTC conference held in San Jose, California.
According to Chey, artificial intelligence is the fundamental driver behind this situation. “AI actually wants to have a lot of HBM, and once you make the HBM… we have to use a lot of wafers,” he explained to the press, as reported by Reuters.
The challenge is straightforward: wafer production cannot match consumption. According to Chey, the disparity between available supply and market demand for essential wafers used in chip manufacturing exceeds 20% industry-wide. This isn’t an issue with a quick resolution.
Expanding wafer manufacturing capacity requires significant time — Chey estimates a minimum of four to five years — establishing a baseline for how rapidly the shortage might resolve. This projection suggests approximately 2030 as the point when equilibrium between supply and demand could return.
Price Increases Already Underway
This shortage is creating immediate market impacts. According to Counterpoint Research, server memory chip prices jumped between 60% and 76% during Q4 2025. Analysts anticipate continued price escalation through Q1 2026.
SK Hynix stands among the primary beneficiaries of these price increases. The firm holds the leading position in HBM manufacturing with 57% market dominance and claims the second spot in worldwide DRAM with 32% market share, based on Counterpoint figures.
The company serves as the leading HBM provider to Nvidia, whose processors form the backbone of AI infrastructure expansion fueling current demand levels.
Shares of SK Hynix advanced over 2% Tuesday after the chairman’s public statements.
Chey mentioned the company would develop strategies to help stabilize DRAM pricing, though specific details remain undisclosed.
Exploring US Market Listing
In related news, Chey verified that SK Hynix is evaluating a potential American Depository Receipt listing. This ADR structure would enable US-based investors to purchase SK Hynix shares directly through American stock exchanges rather than accessing the Korean market.
No definitive schedule or official determination has been made public regarding this potential listing.
Samsung Electronics alongside US-headquartered Micron complete the top three global memory manufacturers. Micron occupies third position internationally in memory and storage chip manufacturing, following Samsung and SK Hynix.
Chey’s observations emerge as the artificial intelligence sector continues generating unprecedented demand patterns throughout the semiconductor supply ecosystem. SK Hynix shares have appreciated considerably over the previous three years as AI-driven orders have expanded.
Counterpoint analysis indicates server memory demand has climbed steadily parallel to AI infrastructure investment, with no indication of deceleration.
Current available data confirms server memory pricing growth remains firmly positive entering 2026, with additional increases anticipated as supply limitations persist.
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