The SK Group chapter warned that memory shortages could threaten the existence of some PC and smartphone manufacturers

Brief about Chey Tae‑won’s statement

At the TPD business forum in Washington, SK Group head Chey Tae‑won emphasized that a “memory deficit” is radically changing the semiconductor industry. He noted that outside the AI segment, PC and smartphone makers cannot meet demand, and some may even have to shut down.

1. Why SK hynix is leading now
- Operating profit

Last year SK hynix’s subsidiary surpassed Samsung Electronics in operating profit volume in the memory segment — the long‑time market leader.

- Margin on different types of memory

When launching HBM (high‑bandwidth memory), the margin exceeds 60 %. That does not mean other memory types are less profitable. In some markets, returns can reach 80 %, thanks to shifted demand.

2. Financial expectations and risks
- Forecasts for 2026

In December SK hynix projected operating profit of $50 billion. In January the forecast was raised to $70 billion, and now it exceeds $100 billion.

- Potential losses

Chey Tae‑won said: “This may sound like good news, but at the same time everything could turn into a $100 billion loss. Volatility is very high; new technology can be profitable, but loss is also possible” — highlighting the peculiarities of the memory business.

3. Memory deficit for AI
- Demand for memory

This year the memory deficit for AI infrastructure may exceed 30 %. The segment “literally saps” all market supply.

- Data‑center and power costs

Building data centers with about 100 GW capacity in the U.S. will require roughly $5 trillion (excluding energy‑infrastructure expenses). This leads to a sharp rise in capital expenditures.

- Conclusion

According to Chey Tae‑won, AI development cannot be stopped. Companies with sufficient resources and capital will become leaders in this race.

4. Meeting with American partners
During the TPD forum, Chey Tae‑won took the opportunity to meet with executives of major U.S. clients: Nvidia, Broadcom, Microsoft, Meta Platforms, and Google.

For example, he had a conversation with Nvidia founder Jensen Huang at one of the Korean restaurants in California.

In these negotiations, Chey Tae‑won apologized for SK hynix’s inability to fully satisfy memory demand, while emphasizing the company’s commitment to further development and strengthening its position in the global market.