SK Group Chairman Says Semiconductor Storage Shortage Will "Continue Until 2030," SK Hynix Considering US Stock Listing

The global chip wafer shortage is unlikely to ease in the short term, as AI-driven demand continues to outpace supply.

On Monday, SK Group Chairman Chey Tae-won stated that the global chip wafer shortage is expected to persist until 2030, with a potential shortfall of over 20%.

Meanwhile, he revealed that SK Hynix is evaluating the possibility of issuing American Depositary Receipts (ADRs) in the United States to expand its global investor base.

At the time of this announcement, SK Hynix, as a key supplier of NVIDIA’s high-bandwidth memory (HBM), is at the forefront of the AI chip demand surge. Chey Tae-won also hinted that the company’s CEO is about to announce a new plan to stabilize DRAM prices, drawing market attention.

Wafer Shortage May Continue Until 2030, with Over 20% Gap Pressure

During the NVIDIA GTC conference in San Jose, California, Chey Tae-won explained in an interview that HBM production consumes a large amount of wafers, and building new capacity takes at least four to five years. This is the fundamental reason why the shortage cannot be quickly alleviated.

“AI actually requires a huge amount of HBM, and once HBM is produced, it must consume a large number of wafers,” Chey Tae-won said. “We need time to expand wafer capacity, at least four to five years. The current shortage may last until 2030, and we expect the wafer shortfall to exceed 20%.”

According to Counterpoint data, SK Hynix holds a 57% share of the HBM market, ranking first globally, and also holds a 32% share of the overall DRAM market, ranking second worldwide. Against the backdrop of continuous expansion in AI computing power demand, wafer supply bottlenecks are impacting the entire supply chain.

Regarding DRAM price stabilization, Chey Tae-won stated that the company is formulating relevant strategies but did not disclose specific details, only mentioning that the CEO will announce a new plan in due course. He also noted that tensions in the Middle East have driven up energy prices, and the group is actively seeking alternative energy sources to cope with cost pressures.

Hynix Evaluates U.S. ADR Listing, Factory Construction in the U.S. Faces Multiple Constraints

Chey Tae-won said that SK Hynix is studying the feasibility of issuing ADRs in the U.S. He pointed out that this move would help expand the company’s shareholder base from Korea to U.S. and international investors, thereby enhancing the company’s global influence.

Regarding expanding production in the U.S., Chey Tae-won remains cautious. He explained that establishing chip manufacturing plants overseas requires sufficient electricity, water resources, construction conditions, and engineering talent, which cannot be quickly met on demand. He emphasized that the company’s current production focus remains in South Korea.

Many of SK Hynix’s major customers are based in the U.S., but Chey Tae-won’s statements indicate that large-scale factory construction in the U.S. in the short term is limited, and capacity expansion will be constrained by infrastructure and talent availability.

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