Global Chip Wafer Shortage Expected to Continue Through 2030, SK Hynix Chairman Says

The leader of South Korea's SK Group predicts the worldwide semiconductor wafer shortage will extend until 2030 due to artificial intelligence driving demand beyond supply capacity. The company, which supplies high-bandwidth memory chips to Nvidia, is exploring ways to stabilize memory chip prices and considering a U.S. stock listing.

The chairman of South Korea’s SK Group delivered a sobering forecast Monday, predicting that the global semiconductor wafer shortage will extend through the end of this decade as artificial intelligence technology continues driving demand far beyond available supply.

Chey Tae-won made the announcement while speaking with media representatives at Nvidia’s GTC Conference in San Jose, California. He also revealed that SK Hynix is considering launching American Depositary Receipts to attract more international investors, while company leadership prepares to announce strategies for stabilizing memory chip costs.

SK Hynix serves as Nvidia’s primary supplier of high-bandwidth memory chips, commanding 57% of that specialized market and holding 32% of the worldwide DRAM memory market as the industry’s second-largest competitor, according to Counterpoint research.

“AI actually wants to have a lot of HBM, and once you make the HBM…we have to use a lot of wafers,” Chey explained when discussing the wafer supply constraints.

“So we need some time to build up more wafers, at least four to five years. The current shortage could continue until 2030, so we expect more than a 20% shortage of the wafers,” he stated.

The executive indicated that SK Hynix plans to develop approaches for bringing stability to DRAM pricing fluctuations.

“So I cannot just announce right here, but I guess that our CEO is going to announce a new plan for how to stabilise the price of the DRAM,” Chey commented.

Regarding questions about increasing semiconductor production capacity within the United States, where most of SK Hynix’s client companies operate, Chey emphasized that building international manufacturing facilities demands sufficient electrical power, water access, suitable construction environments, and skilled engineering personnel. He noted these requirements cannot be easily fulfilled on short notice, explaining that the company remains concentrated on Korean production operations.

Concerning the potential American stock listing, Chey suggested this approach could help SK Hynix diversify its ownership beyond Korean borders, providing greater access to U.S. and global investment markets while enhancing the company’s international profile.

Chey additionally mentioned that Middle Eastern conflicts have generated significant challenges through elevated energy costs, prompting the corporate group to investigate alternative power supply options.

SK Hynix stock prices climbed 2.7% during Tuesday morning trading in Seoul, outperforming the benchmark KOSPI index’s 2.4% increase.