At the KCCI Jeju Forum, Chey Tae-won warned that AI-driven memory demand will continue to rise into next year, keeping memory prices high and underscoring a tight market.

He noted that Elon Musk’s interest in building his own semiconductor fabs could become a competitive threat to established memory makers.

Building enough advanced AI memory capacity remains difficult due to large capital needs, long lead times, and ongoing equipment and skilled-worker shortages, limiting supply growth as demand accelerates.

The piece highlights broader industry dynamics, including potential price-fixing lawsuits and shifts in supplier relationships driven by AI demand.

Chey argued that rising prices aren’t healthy long-term, warning that downstream industries will bear the burden if manufacturers can’t indefinitely pass on higher memory costs.

SK Group is exploring the possibility of building a memory fab in the United States to boost production capacity.

Chey urged semiconductor firms not to withhold supply to sustain high prices, arguing that expanding production—even with slim margins—benefits the market and national competitiveness.

He warned that very high prices could draw in new entrants and government intervention, with the AI infrastructure race becoming a national-security concern for many nations.

Chey expressed caution on SK hynix’s stock split, noting the issue hasn’t been fully reviewed and that ADR handling adds complexity to listings; decisions will hinge on policy and broader strategy.

High memory margins could invite new players, including Chinese brands like CXMT and YMTC, while large brands such as Corsair, Lenovo, and Apple show interest in sourcing Chinese memory chips.

High memory costs are already impacting consumer products, as PC and smartphone makers must pass costs to customers, but sustained price hikes are unsustainable for the market.

He projected AI-related demand could grow 60–100% next year versus this year and cautioned that supply shortages will persist as demand outstrips supply, creating market chaos.