SK Group Chairman Says Memory Chip Prices 'Abnormally High', Considers US Plant to Ease 'Chipflation'

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