SK hynix to Double Wafer Capacity in Five Years; Predicts Memory Shortage to Last Until 2030

Chey Tae-won, Chairman of SK Group, recently revealed that SK hynix plans to double its overall wafer production capacity over the next five years.

Despite facing numerous obstacles amid rising costs for equipment, construction, water, and electricity, the company is committed to actively securing the necessary funds and resources to overcome these challenges and fully execute this expansion plan.

Chey reiterated that the memory supply bottlenecks triggered by the widespread adoption of AI are expected to persist until 2030. He pointed out that not only is global capital pouring into AI data center construction, but Nvidia's upcoming AI PC architecture will also create rigid demand for high-capacity memory, providing long-term growth momentum for the memory market.

As a core supplier of HBM (High Bandwidth Memory) for Nvidia, SK hynix captured a 58% share of the global HBM market in the first quarter of this year. Chey expressed his hope that the company can become the primary HBM supplier for Nvidia's next-generation Vera Rubin system. Driven by the AI boom, SK hynix's market capitalization surpassed the $1 trillion mark for the first time last week.

When discussing price trends amidst infrastructure bottlenecks, Chey candidly stated that they will ultimately depend on market forces. However, he clearly voiced his opposition to price spikes that could undermine the stability of the ecosystem. He predicted that supply shortages are bound to drive prices up, but he repeatedly emphasized the importance of "sustainability," expressing deep concern over the negative impact that short-term price surges could have on the entire industry.