SK Chairman Choi: Korea to Remain Semiconductor Hub; No US Plant Expansion Plans

SK Group Chairman Choi Tae-won predicted that the global memory semiconductor supply shortage will persist until 2030, with its impact exceeding 20%. He explained that due to the characteristic of the manufacturing process, which requires a minimum of four to five years just to secure core materials like wafers, the supply shortage issue across the industry is expected to be prolonged.

Speaking to reporters in the US on the 16th (local time), Choi announced his intention to maintain a Korea-centric production strategy instead of expanding production facilities within the United States, amid the prolonged supply shortage. He explained that this approach would allow for a more rapid and effective response to rapidly changing technological demands by leveraging the domestic infrastructure, which already has established systems for power, water, construction, and skilled labor.

Choi also touched upon the issue of balancing the supply of High Bandwidth Memory (HBM), a key component for the artificial intelligence (AI) industry, with the supply of general DRAM. He pointed out that concentrating production on specific advanced products could disrupt the supply of existing industrial semiconductors, underscoring the importance of balanced supply across product lines.

Meanwhile, SK Hynix is reportedly considering a US ADR listing to expand its global investor base. Additionally, CEO Kwak Noh-jung is expected to announce plans soon for stabilizing DRAM prices to resolve market imbalances.