TLDR
- Chairman Chey Tae-won of SK Group projects the memory semiconductor shortage will persist through approximately 2030.
- Artificial intelligence applications requiring high-bandwidth memory (HBM) are consuming massive wafer quantities, driving the supply gap.
- Current industry-wide wafer availability falls short of demand by over 20%.
- The company commands 57% of the HBM market segment and holds 32% of worldwide DRAM market share.
- Management is evaluating the possibility of launching an American Depository Receipt listing for US investors.
SK Hynix’s top executive, Chairman Chey Tae-won, generated significant attention this week when he projected that memory chip supply constraints could extend another four to five years. His remarks came during discussions with media representatives at Nvidia’s GTC conference taking place in San Jose, California.
According to Chey, artificial intelligence applications are 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 reporting.
The core challenge is straightforward: wafer production capacity cannot match consumption rates. The chairman noted that industry-wide, the disparity between available wafers and actual demand exceeds 20%. This isn’t a challenge with quick solutions.
Expanding wafer manufacturing capabilities requires significant time investment — Chey indicated a minimum of four to five years — establishing a baseline for how rapidly the supply-demand imbalance can improve. This projection suggests equilibrium won’t return until approximately 2030.
Prices Already Climbing
The supply constraints are already impacting markets today. During Q4 2025, server memory chip pricing jumped between 60% and 76%, data from Counterpoint Research shows. Industry analysts anticipate continued price appreciation through Q1 2026.
SK Hynix has emerged as a major winner from these pricing dynamics. The manufacturer dominates the HBM segment with 57% market share and holds the second position in worldwide DRAM with 32%, according to Counterpoint figures.
The company also serves as the leading HBM provider to Nvidia, whose processors power the AI infrastructure expansion fueling current demand patterns.
Shares of SK Hynix advanced over 2% in Tuesday trading following the chairman’s public statements.
Chey mentioned the organization would develop strategies aimed at stabilizing DRAM pricing, though concrete details remain unannounced.
ADR Listing Under Review
In separate commentary, Chey acknowledged that SK Hynix is examining the feasibility of an American Depository Receipt offering. Such a listing would enable US-based investors to purchase SK Hynix shares on domestic exchanges rather than accessing Korean markets.
No specific timeline or final determination has been disclosed regarding this initiative.
Samsung Electronics alongside US-based Micron complete the top tier of global memory manufacturers. Micron holds the third position internationally in memory and storage chip manufacturing, behind Samsung and SK Hynix.
Chey’s observations arrive as the artificial intelligence sector continues generating unprecedented demand dynamics throughout semiconductor supply networks. SK Hynix equity has appreciated substantially across the previous three years as AI-related purchase orders have expanded.
Counterpoint analytics demonstrate server memory requirements have grown steadily in tandem with AI infrastructure investment, with no indication of deceleration.
The latest available market data confirms server memory pricing momentum remains strongly positive entering 2026, with additional increases anticipated as supply limitations persist.
