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

SK Group Chairman Chey Tae-won stated that memory semiconductor prices are 'abnormally high' and urged the industry to increase production to prevent 'chipflation'—where rising chip costs drive up finished product prices for PCs and smartphones. He noted that while AI companies can absorb higher costs, consumer electronics makers must pass them on to customers. Chey warned that sustained high margins could attract new entrants, such as Chinese manufacturers CXMT and YMTC, which are already gaining customers like Corsair, Lenovo, and potentially Apple. He also cited Elon Musk's interest in building his own fab as a threat. SK Group is considering building a memory chip plant in the US to expand supply. The article notes that before the AI boom, the memory industry suffered a severe downturn, and increased competition could make future market cycles more difficult for incumbents.