SK Group: Chip Wafer Shortage May Last Until 2030

Key Projections from SK Group

Chey Tae-won, Chairman of South Korea’s SK Group, forecasts the global chip wafer shortage will likely persist until 2030. The projection was made on the sidelines of Nvidia’s GTC Conference. The chairman also revealed that SK Hynix is considering a potential U.S. ADR listing to expand its investor base.

AI Driving Unprecedented Demand

The primary cause of the shortage is the explosive growth in artificial intelligence, which requires a substantial supply of high-bandwidth memory (HBM). Chey explained that HBM production consumes a significant number of wafers. SK Hynix currently holds a 57% share of the HBM market and is the main supplier to Nvidia.

Economic and Market Impact

The chairman anticipates a wafer shortage exceeding 20% as new production capacity will take four to five years to build. In response, SK Hynix is developing a strategy to stabilize DRAM prices. Following these announcements, SK Hynix shares traded up 3.5% in Seoul, outperforming the benchmark KOSPI index.

Outlook

The market will closely watch for SK Hynix's official plans regarding DRAM price stabilization and a potential U.S. listing. The prolonged wafer shortage signals continued supply chain pressures and potentially higher costs for the global technology sector.

FAQ

Q: How long is the chip wafer shortage expected to last?
A: SK Group's Chairman Chey Tae-won projects the shortage could continue until 2030.

Q: What is the main reason for the wafer shortage?
A: Surging demand for HBM chips driven by the artificial intelligence industry is outpacing the current supply of wafers.

Q: What strategic moves is SK Hynix considering?
A: The company is reviewing a potential U.S. ADR listing and is preparing a plan to stabilize DRAM chip prices.

Source: Investing.com