Chey Tae-won: "DRAM Price Stabilization Plan to Be Announced Soon... Considering US ADR Listing" [GTC 2026]

Memory Shortage Drives Push to Expand Wafer Supply
Semiconductor Challenges Likely to Persist Through 2030
"HBM Is Essential, We Will Do Our Utmost to Meet Demand"

SK Group Chairman Chey Tae-won identified the global memory shortage as being caused by a "wafer shortage." He stated that efforts are underway to expand wafer supply in order to stabilize chip prices, and that a plan specifically aimed at stabilizing DRAM prices would be announced soon.

On March 16 (local time), at 'GTC 2026' held in San Jose, California, Chairman Chey met with the press and addressed "chipflation," saying, "Currently, demand is exploding," and added, "We are working to supply enough chips without raising prices, but there are physical limitations."

Chairman Chey pointed to "wafer shortage" as the reason behind the global memory shortage. He explained, "When we start manufacturing HBM, a large number of wafers are required for production," and added, "However, expanding wafer production capacity requires a lead time of at least four to five years." He predicted that this issue could persist until 2030, stressing, "This is not just an issue for SK hynix, but a problem for the entire semiconductor industry."

He also noted that, at present, overall wafer supply is lacking by more than 20%, making it necessary to increase supply. However, he pointed out that there are limits to expanding supply due to issues such as electricity, water, and other resources. Additionally, the company plans to announce a strategy to stabilize DRAM prices. He stated, "I understand that the CEO will soon announce a new plan to stabilize DRAM prices."

Chairman Choi is answering questions from the press at 'GTC 2026' held on the 16th (local time) in San Jose, California, USA. Photo by Joint Press Corps.

When asked whether SK hynix's strong dominance could be maintained in the next generation, he said, "Artificial intelligence (AI) requires many accelerators and graphics processing units (GPUs), and high-bandwidth memory (HBM) is essential for manufacturing our own GPUs. SK hynix will do its best to respond to market demand."

He continued, "Another problem is that if too much HBM is used, there could be a shortage of conventional DRAM," explaining, "In industries such as smartphones and PCs, it may become difficult to obtain DRAM. This is creating considerable challenges, and it can affect not only AI companies but also individuals."

Regarding the possibility of relocating manufacturing facilities to the United States, he commented, "It's the same wherever you go. Establishing production capacity outside Korea also takes time. Building from the ground up (greenfield approach) requires five to seven years." He added, "Korea already has an established infrastructure, so we can respond much faster. That is why we are focusing on Korea."

He also noted that the situation in Iran has impacted energy costs. Chairman Chey said, "It is causing difficulties in terms of energy prices," and added, "At the group level, we are searching for alternative energy sources and working to resolve this issue."

He further explained that the company is considering listing American Depositary Receipts (ADR) in the United States. Chairman Chey said, "I believe this could make us a more global company, as it would provide exposure not only to Korean shareholders but also to American and global investors." Regarding investment in U.S. AI infrastructure, he added, "We are looking into new computing systems and plan to leverage our strength in memory. Memory chips face bottlenecks and bandwidth as key issues, and we are seeking new technologies to address these challenges."

Chairman Chey also mentioned Nvidia, calling it "one of our largest customers," and revealed plans to meet with CEO Jensen Huang and other big tech companies during GTC.

This content was produced with the assistance of AI translation services.