Key Takeaways
- SK Group’s Chairman Chey Tae-won projects the worldwide memory chip scarcity will extend through approximately 2030.
- Artificial intelligence applications requiring high-bandwidth memory (HBM) are consuming massive wafer quantities, fueling the shortage.
- Industry-wide wafer supply trails demand by over 20%.
- SK Hynix commands 57% of the HBM market and controls 32% of worldwide DRAM production.
- The company is exploring the possibility of an American Depository Receipt listing in the United States.
SK Hynix’s Chairman Chey Tae-won captured significant attention Monday when he revealed to journalists that the worldwide memory semiconductor shortage might persist for an additional four to five years. His remarks came during Nvidia’s GTC conference held in San Jose, California.
Chey identified artificial intelligence as the primary driver. “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 journalists, according to Reuters.
The issue is straightforward: wafer production capacity cannot meet current requirements. According to Chey, the disparity between available supply and market demand for foundational wafers used in chip manufacturing exceeds 20% throughout the sector. This isn’t an issue with a quick resolution.
Expanding wafer manufacturing capabilities requires substantial time — Chey indicated a minimum of four to five years — establishing a baseline for how rapidly the scarcity can diminish. This projection suggests approximately 2030 as the point when supply and demand will achieve equilibrium.
Price Increases Already Underway
The scarcity extends beyond theoretical concerns. Server memory semiconductor prices soared between 60% and 76% during Q4 2025, based on Counterpoint Research findings. Analysts anticipate continued price escalation through Q1 2026.
SK Hynix has emerged as a major winner from these price increases. The corporation holds the leading position in HBM production with 57% market share and secures second place in worldwide DRAM with 32% market share, according to Counterpoint statistics.
The company also serves as the principal HBM provider for Nvidia, whose processors power the AI infrastructure expansion generating this demand.
SK Hynix shares climbed more than 2% Tuesday after the chairman’s statements.
Chey additionally mentioned the company would develop strategies to help stabilize DRAM pricing, although no concrete initiatives have been disclosed.
Potential ADR Listing Under Consideration
In a separate development, Chey acknowledged that SK Hynix is evaluating a possible American Depository Receipt listing. Such an ADR would enable American investors to purchase SK Hynix shares directly through U.S. exchanges rather than accessing the Korean stock market.
No specific timeframe or official determination has been revealed regarding this possibility.
Samsung Electronics alongside U.S.-headquartered Micron complete the top three global memory producers. Micron occupies third position internationally in memory and storage chip manufacturing, following Samsung and SK Hynix.
Chey’s observations arrive as the artificial intelligence sector continues generating unprecedented demand dynamics throughout the semiconductor ecosystem. SK Hynix stock has appreciated substantially over the previous three years as AI-focused orders have expanded.
Counterpoint information demonstrates that server memory requirements have climbed steadily in parallel with AI infrastructure investment, with no indication of deceleration.
The latest available figures position server memory pricing growth solidly in positive territory entering 2026, with additional increases anticipated as supply limitations persist.
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