SK Group chairman Chey Tae-won says memory shortage will persist
South Korea’s 3,200 trillion won chip investment plan lifted equipment-related shares but also raised concerns that faster capacity growth could weaken memory-market supply discipline in FY27-FY28.
SK Group chairman Chey Tae-won said on June 29 that memory chip shortages are likely to persist even if SK Hynix accelerates factory construction, highlighting near-term supply tightness despite South Korea’s 3,200 trillion won ($2.07 trillion) semiconductor investment push. The plan, which includes an 800 trillion won new chip hub and faster buildout in Yongin after promised regulatory fast-tracking, boosted shares of semiconductor equipment suppliers on expectations of stronger demand for chipmaking tools. Analysts said the expansion by Samsung Electronics and SK Hynix, which together account for about two-thirds of global memory-chip output, could undermine FY27-FY28 supply discipline and increase longer-term oversupply risks if AI-driven demand cools.
- HBM: High-bandwidth memory, a high-speed memory chip used in advanced AI processors
- supply discipline: Restrained capacity growth intended to support pricing in cyclical markets
- semiconductor equipment suppliers: Companies that make tools and machinery used in chip production