SK Hynix Signals Decade：Long Chip Shortage as AI Demand Scales

The global chip supply chain has a problem that won't go away for years. At Nvidias conference in San Jose SK Group Chairman Chey Tae-won said that there will be a shortage of silicon wafers until 2030. AI applications need a lot of memory called High Bandwidth Memory (HBM) and the factories that make it can't keep up.

SK Hynix, which is a supplier to Nvidia is trying to deal with this problem by thinking about listing on the US stock market to get more investors. The company is making a lot of money because its a leader in the market. Its also trying to set stable prices so the market doesn't get too hot.

The 20% Gap: Why Wafers Are the Bottleneck

The excitement around AI has a limit: how many wafers can be made. According to Chairman Chey making HBM needs a lot wafers than standard memory products. This means that even if factories work hard they can't make enough wafers.

"We need least four to five years to build more wafer factories " Chey said. He thinks there will be a shortage of than 20% until the end of the decade. This means that the "chip winter" is over but now its a "capacity marathon" where the winner's the one that can get the materials and factory space first.

Market Dominance vs. Price Volatility

SK Hynix has 57% of the HBM market which makes it the main winner of the AI infrastructure build-out.. This also means that it has to deal with big changes in prices. Recently server memory prices went up by 60-76% in the quarter of 2025.

Strategic Pivot: The US Listing and Energy Diversification

SK Group is also thinking about listing SK Hynix on the US stock market. This would help the company get investors from around the world. The group is also looking for energy sources. Modern AI chips need a lot of power. Sk Hynix needs to secure stable energy for its factories.

Investor Takeaway: A Long-Term Supply Play

The story for SK Hynix has changed from a memory company to a key player in AI. The company has 32% of the DRAM market which makes it the second-biggest player. Investors should watch for the CEOs plan to set prices. If SK Hynix can balance its prices and supply it will be a partner, to AI companies.