SK Group Chairman: The shortage of storage chips may last until 2030, SK Hynix will take multiple measures to deal with the "super long shortage cycle".

Chairman of South Korean SK Group, Choi Tae-won, stated Monday that the global shortage of storage chips driven by demand for artificial intelligence may continue until 2030. Choi Tae-won explained the reason for the shortage of storage chips, stating, "In fact, artificial intelligence requires a large amount of HBM, and once HBM production begins... we must consume a large amount of storage chips." "Therefore, we need some time to increase storage chip production capacity, at least four to five years. The current shortage may continue until 2030, so we expect the shortage of storage chips to exceed 20%," Choi Tae-won said. During the NVIDIA GTC conference in San Jose, California, Choi Tae-won told reporters that SK Hynix is evaluating the possibility of listing American Depositary Receipts (ADRs) in the US to expand its global investor base; meanwhile, its CEO may announce a plan to stabilize DRAM chip prices, and the group is also exploring alternative energy sources. According to Counterpoint data, SK Hynix is the major supplier of NVIDIA's High Bandwidth Memory (HBM), ranking first in the HBM market with a 57% share, and holds a 32% share of the global DRAM market, making it the second largest manufacturer globally. He stated that SK Hynix will work on developing a strategy to stabilize DRAM prices. "So I can't announce it directly now, but I guess our CEO will announce a new plan on how to stabilize DRAM prices." When asked if they will expand chip manufacturing capacity in the US, where many SK Hynix customers are located, Choi Tae-won said that establishing overseas factories requires sufficient power, water resources, construction conditions, and engineering talent. Therefore, he believes that it cannot be achieved easily according to demand and added that the company is currently focusing on production in South Korea. Regarding the potential US ADR listing, Choi Tae-won stated that this would help expand SK Hynix's shareholder base beyond South Korea, increase exposure to US and international investors, and enhance its global influence. Choi Tae-won also mentioned that due to rising energy prices and tensions in the Middle East, the group is seeking other available energy sources to overcome the difficulties.