The leader of South Korea’s SK Group announced Tuesday that the company’s memory chip division, SK Hynix, intends to expand its wafer production capacity by 100% within the next five years.
Chey Tae-won made the announcement during the Computex conference in Taipei, where top technology executives from around the globe, including representatives from Nvidia, have assembled.
Chey, who previously cautioned in March that worldwide chip wafer shortages would likely continue through 2030, also indicated the company seeks additional collaborative relationships in Taiwan beyond its current partnership with TSMC, the globe’s biggest contract semiconductor manufacturer.
He expressed hope that his company could become a primary supplier of high-bandwidth memory (HBM) components for Nvidia’s Vera Rubin system.
Just last week, SK Hynix achieved a market valuation exceeding $1 trillion for the first time, joining competitors Samsung Electronics and Micron Technology in reaching this significant benchmark amid an artificial intelligence-fueled market surge.
As Nvidia’s primary HBM chip supplier, SK Hynix commanded a 58% portion of the worldwide HBM market during the first quarter, with Samsung and Micron each capturing 21% shares, based on data from Counterpoint Research.
Chey’s statements arrive as industry experts suggest the artificial intelligence surge is transforming the historically cyclical memory sector.
Goldman Sachs increased its 2028 operating profit projections for SK Hynix and Samsung Electronics by 24% and 23.3% respectively, reaching 454 trillion won ($299.62 billion) and 610 trillion won, attributing the growth to continued AI-powered demand.
