SK Group Chairman Says Abnormal Memory Prices Should Fall; AI Chip Demand Seen Up 60–100% Next Year

　　The recent surge in memory prices has drawn comments from SK Group Chairman Chey Tae-won, who also chairs SK hynix, one of the biggest beneficiaries of the boom. According to ETNews, Chey, who also serves as chairman of the Korea Chamber of Commerce and Industry (KCCI), said current memory prices are abnormally high and warned that if prices remain elevated, PC and mobile device prices will continue to rise, with those higher costs ultimately weighing on consumer demand.

　　As noted by Maeil Business Newspaper, Chey said demand for AI semiconductors is expected to increase by 60% to 100% in 2027 from 2026, while the broader memory semiconductor market is also projected to grow by at least 50% to 60% over the same period. However, he noted that few companies are meaningfully expanding supply, meaning the supply-demand gap is likely to widen further. This suggests that while the AI investment boom is driving memory prices higher, it could ultimately place greater pressure on downstream industries.

　　He argued that rising prices are not a healthy sign for the market, adding that prices should fall because current levels are abnormal. He also warned that PC and mobile manufacturers cannot continue passing higher memory costs on to consumers. This suggests that while the AI investment boom is driving memory prices higher, it could ultimately place greater pressure on downstream industries.

　　Chey also argued that memory companies should not restrict supply to keep prices elevated. As noted by Maeil Business Newspaper, he said limiting production to maintain high prices is not a sustainable strategy, adding that expanding supply to grow the overall market—even at the expense of slightly lower margins—would generate greater long-term benefits. He further warned that persistently high prices could attract new competitors and prompt governments to intervene.

　　However, Chey acknowledged that expanding supply will not be easy. According to Maeil Business Newspaper, increasing production of advanced AI memory requires significant investment and time to build manufacturing capacity, while shortages of equipment and skilled personnel remain key constraints. Although the industry is working to maximize output, he said demand is growing much faster, raising concerns that memory prices may continue to rise rather than fall. As ETNews notes, Chey said the top priority is to expand memory production capacity wherever possible, including in Yongin, the Honam region, and the U.S.

　　Chey’s comments align with SK hynix CEO Kwak Noh-jung’s assessment of the industry’s supply-demand outlook. According to Reuters, Kwak said the global memory industry is heading for its worst-ever supply shortage in 2027, with memory demand expected to outpace production capacity well into the next decade despite aggressive capacity expansion.

　　Chey on AI Infrastructure and Long-Term Growth

　　Beyond the memory market, Chey also predicted that even if the current supply shortage is partially eased, AI-related bottlenecks will shift to other parts of the infrastructure stack. According to ETNews, Chey said electrical equipment for energy infrastructure is already in short supply, and as AI adoption accelerates, shortages could eventually extend to power cables and even the raw materials needed to manufacture data center cables.

　　Looking further ahead, Chey said the ongoing wave of AI infrastructure investment is expected to eventually lower the cost of generating AI tokens, as noted by ETNews. Once the industry enters a token economy in which AI is converted into productivity for real-world work and services, he believes a self-sustaining AI ecosystem will emerge.