He explained to reporters during a break at Nvidia's annual conference in San Jose that AI requires a significant amount of HBM (high-bandwidth memory), and since the company is manufacturing HBM, there is a high demand for wafers, which is contributing to the current shortage.
Chey Tae-won mentioned that they require some time to increase their wafer inventory, at least four to five years. "The ongoing shortage may continue until 2030, which means we anticipate a wafer shortage exceeding 20%."
SK Hynix, which is part of the SK Group, serves as Nvidia's primary provider of high-bandwidth memory. According to Counterpoint, SK Hynix has a 57% market share in the global HBM market and a 32% share in the overall DRAM chip market, which encompasses HBM.
SK Hynix is working on a strategy to help stabilize the prices of DRAM chips, according to Chey Tae-won. "I can't make the announcement directly, but I believe our CEO will introduce a new plan aimed at stabilizing DRAM prices," he added.
According to him, the chipmaker is concentrating on production in South Korea. Establishing manufacturing facilities abroad needs proper access to energy and water, suitable construction facilities, and skilled engineers, and it is not something that can be done quickly or on demand.
SK Hynix is also looking into listing American Depositary Receipts (ADRs) in the United States, which may assist the company in broadening its shareholder base, gaining access to both American and international capital, and strengthening its global presence, Chey Tae-won added.
source: reuters.com
Chey Tae-won mentioned that they require some time to increase their wafer inventory, at least four to five years. "The ongoing shortage may continue until 2030, which means we anticipate a wafer shortage exceeding 20%."
SK Hynix, which is part of the SK Group, serves as Nvidia's primary provider of high-bandwidth memory. According to Counterpoint, SK Hynix has a 57% market share in the global HBM market and a 32% share in the overall DRAM chip market, which encompasses HBM.
SK Hynix is working on a strategy to help stabilize the prices of DRAM chips, according to Chey Tae-won. "I can't make the announcement directly, but I believe our CEO will introduce a new plan aimed at stabilizing DRAM prices," he added.
According to him, the chipmaker is concentrating on production in South Korea. Establishing manufacturing facilities abroad needs proper access to energy and water, suitable construction facilities, and skilled engineers, and it is not something that can be done quickly or on demand.
SK Hynix is also looking into listing American Depositary Receipts (ADRs) in the United States, which may assist the company in broadening its shareholder base, gaining access to both American and international capital, and strengthening its global presence, Chey Tae-won added.
source: reuters.com