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SK Chairman: Semiconductor Cycle Fundamentally Changed by AI; Global Fab Investment Considered
🇰🇷 South Korea /Economy & Trade

SK Chairman: Semiconductor Cycle Fundamentally Changed by AI; Global Fab Investment Considered

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • SK Group Chairman Chey Tae-won believes the semiconductor cycle has fundamentally changed due to the AI revolution.
  • He stated that SK Hynix will consider building fabrication plants anywhere globally, including the U.S., if conditions are met.
  • The company raised $26.5 billion in its Nasdaq listing, aiming to increase global market access and future investment.

The semiconductor market's traditional boom-and-bust cycles have been irrevocably altered by the artificial intelligence revolution, according to SK Group Chairman Chey Tae-won. Speaking at a press conference in New York, Chey asserted that while cycles may not disappear entirely, the current gap between supply and demand is substantial, with demand growth significantly outpacing supply expansion.

He highlighted the considerable lead times required to increase supply and the numerous constraints on building new fabrication plants. "Structural changes have occurred. It's certain that it won't move in the same cycle as before," Chey stated. He noted that global AI tech giants are experiencing explosive demand for memory chips, leading to supply bottlenecks. Even Apple is reportedly discussing the use of memory chips from Chinese manufacturers with the U.S. government.

Structural changes have occurred. It's certain that it won't move in the same cycle as before.

— Chey Tae-wonSK Group Chairman explained his view on the changing semiconductor market dynamics.

Chey likened current AI development to a "4 or 5-year-old child," emphasizing the continuous need for massive learning and, consequently, ever-increasing memory requirements. Responding to U.S. Commerce Secretary Howard Lutnick's call for expanded semiconductor production in the U.S. by Samsung and SK Hynix, Chey indicated openness to investment. "If there is a suitable location anywhere in the world, including the United States, we will consider it," he said, citing the need for power, water, and large sites for new fabs.

SK Hynix raised $26.5 billion through its listing on the Nasdaq, issuing 177.9 million ADRs at $149 per share. The initial trading price was $170, a 14.1% increase from the offering price, and it climbed further during the session. Chey views the listing as a means to enhance global market accessibility and attract future investment, thereby expanding the overall market pie rather than diminishing South Korea's stock market.

If there is a suitable location anywhere in the world, including the United States, we will consider it.

— Chey Tae-wonThe SK Group Chairman addressed the possibility of building new semiconductor fabrication plants in the U.S.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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