Memory chip shortage could last until 2030, SK chairman warns

Chey Tae-won warned that the global memory chip shortage could last for years, with structural supply constraints likely to continue into the next decade. Speaking on the sidelines of Nvidia GTC 2026 in San Jose, he said limited wafer capacity remains a key bottleneck for the semiconductor industry.

‘The shortage stems from a lack of wafer capacity, and securing additional wafers takes at least four to five years,’ Chey said. ‘We expect the industry-wide supply shortfall to persist at over 20 percent through 2030.’

He added that SK Hynix is implementing initiatives such as adjusting production schedules and diversifying supplier partnerships to stabilise prices. CEO Kwak Noh-jung is expected to provide further details on these new steps to manage volatility linked to the memory chip shortage.

Despite growing pressure to expand manufacturing overseas, Chey stressed that the group will prioritise domestic production to better respond to the ongoing memory chip shortage. ‘Building capacity outside Korea takes the same amount of time, regardless of location,’ he said. ‘Korea already has the infrastructure in place, allowing for a much faster response.’

He also highlighted the challenges of building fabrication plants abroad, including the need for reliable electricity and water supplies, as well as access to skilled engineering talent.

On competition in the high-bandwidth memory market, Chey noted that rising demand driven by artificial intelligence is reshaping supply dynamics. ‘AI requires graphics processing units (GPUs), and GPUs require HBM. We will do our best,’ he said, while cautioning that excessive focus on HBM could worsen the memory chip shortage for conventional DRAM used in smartphones and personal computers.

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