SK Group Chief Warns 2027 Could Bring Severe AI Memory Shortage
SK Group Chairman Chey Tae-won says demand for AI memory could surge far beyond available supply, raising prices and potentially creating geopolitical tensions.
SK Group Chairman Chey Tae-won has warned that the global shortage of memory chips used in artificial-intelligence systems could become significantly worse through 2027. He said major customers are seeking roughly 60% to 100% more AI memory for 2027 than current levels, while manufacturers are struggling to expand production quickly enough.
The problem is being driven by the rapid expansion of AI infrastructure. AI data centers require enormous quantities of high-bandwidth memory (HBM), which is essential for feeding data quickly to powerful AI processors. Chey said AI-related demand now represents more than half of semiconductor consumption, with overall demand growing much faster than new manufacturing capacity.
Chey warned that the shortage could eventually move beyond an industry problem and become a geopolitical issue. Governments are already becoming involved as countries seek to secure enough critical semiconductor supplies for their domestic technology industries. He cautioned that continued shortages could lead governments to pressure other countries over access to memory chips.
SK hynix is accelerating its expansion plans in response. The company has moved forward the planned opening of a clean room at its Yongin semiconductor cluster to February 2027 and has committed an additional 21.6 trillion won (about $14.5 billion) to capacity expansion. It is also converting its Cheongju M15X facility toward high-bandwidth-memory production.
The warning highlights a major challenge facing the AI industry: building powerful AI models is only part of the equation. The hardware required to run them must also be produced at enormous scale. If memory supply remains constrained, AI companies could face higher infrastructure costs and delays in expanding data-center capacity. For SK hynix and other memory manufacturers, however, sustained AI demand could create significant opportunities—provided they can expand production quickly enough to meet the market’s needs.
