SK Group Chairman Says Memory Chip Prices 'Abnormally High', Considers US Plant to Boost Supply

SK Group Chairman Chey Tae-won stated that memory chip prices are 'abnormally high' and warned that the industry must increase supply to prevent 'chipflation'—where rising chip costs drive up prices for PCs and smartphones. He noted that while AI companies can absorb higher costs, consumer electronics makers cannot, leading to potential price hikes for end users. Chey also revealed that SK Group is considering building a memory chip plant in the US to expand production. He cautioned that persistently high prices could attract new competitors, such as Chinese firms CXMT and YMTC, which have already gained orders from brands like Corsair, Lenovo, and even Apple. Chey also cited Elon Musk's interest in building his own fab as a potential long-term threat. The article notes that the current high demand driven by AI provides cover for memory makers, but warns that once the boom ends, increased competition could hurt incumbent firms.