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SK Chairman Eyes Billions in AI Memory, Warns of Risks
23 Feb
Summary
- SK Group chairman predicts substantial growth in AI memory chip production.
- High-bandwidth memory chips are generating enormous profits for SK Hynix.
- Chairman warns of potential future losses due to market shifts.
SK Group Chairman Chey Tae-won announced plans to expand the production of AI memory chips, a move driven by the immense global demand from data center construction. He referred to high-bandwidth memory (HBM) as a "monster chip" that is currently yielding significant profits for SK Hynix, a trend reflected in the company's stock performance, which has quadrupled over the past year.
While SK Hynix has sold out its HBM supply for 2026, aligning with similar sell-outs by competitors like Micron, Chey also expressed caution. He warned that the industry's rapid technological evolution could drastically alter the competitive landscape, potentially leading to substantial future losses despite current high profits. Analysts' projections for SK Hynix's annual operating profit have seen upward revisions, with some anticipating figures exceeding $100 billion, though Chey stressed the possibility of a comparable loss.
Furthermore, Chey emphasized the critical challenge of energy infrastructure required for AI data centers. SK Group is exploring the development of power plants to accompany these facilities, recognizing that failure to meet energy demands could have "disastrous" consequences.
