SK Hynix, the world’s second-largest memory chipmaker, plans to double its wafer production capacity over the next five years to meet surging demand for high-bandwidth memory (HBM) chips essential to artificial intelligence systems, the chairman of its parent SK Group said on Tuesday.
Chey Tae-won, speaking at the Computex technology conference in Taipei, a gathering that has drawn top executives from Nvidia and other leading tech firms, outlined an aggressive expansion strategy amid what he described as persistent supply bottlenecks in the memory industry.
“We are going to double the whole capacity over the next five years … there are a lot of obstacles and hurdles, but we will get over them and expand,” Chey told reporters.
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SK Hynix holds a commanding 58% share of the HBM market in the first quarter, according to Counterpoint Research, ahead of Samsung Electronics and Micron Technology, each with 21%. HBM chips are critical for powering AI accelerators from Nvidia and others, and demand has outstripped supply as data center operators race to build ever-larger training clusters.
Chey reiterated his earlier forecast that memory supply shortages could persist through 2030, a view first expressed in March. He highlighted Nvidia’s upcoming AI personal computer architecture as another driver of long-term demand, and expressed hope that SK Hynix could become a major supplier of HBM for Nvidia’s advanced Vera Rubin platform.
Goldman Sachs Upgrades Profit Forecasts on Sustained AI Tailwinds
The bullish outlook is echoed by analysts. Goldman Sachs raised its 2028 operating profit forecasts for SK Hynix and Samsung by 24% and 23.3%, respectively, to 454 trillion won ($299.62 billion) and 610 trillion won. The bank cited sustained AI-driven demand as the key factor, expecting memory chip shortages to keep pricing elevated for years.
This momentum has already translated into landmark valuations. Last week, SK Hynix topped $1 trillion in market value for the first time, joining Samsung Electronics and Micron Technology in the elite club. The KOSPI benchmark has been one of the world’s best-performing major indexes, fueled almost entirely by the AI boom and the outsized success of South Korea’s memory chip giants.
Intensifying Competition in the HBM Market
Competition in high-bandwidth memory is heating up rapidly. On Tuesday, Samsung unveiled a mock-up of its future HBM5 chip and introduced new Heat Path Block thermal management technology to improve performance and efficiency. Last week, Samsung said it had begun shipping samples of its latest HBM4E chip to customers, claiming a lead over rivals in distributing advanced memory for AI data centers.
Chey noted that SK Hynix’s HBM4E roadmap would depend heavily on customer demand.
“There’s only one customer for HBM4E right now,” he said, referring to Nvidia.
He also stressed the need for deeper partnerships in Taiwan, not just with TSMC but across the broader ecosystem, to support scaling ambitions.
On pricing, Chey struck a balanced tone, warning that excessive increases could harm the broader AI ecosystem.
“The whole AI industry needs more sustainability. We have to continue to grow, but sudden jumps in prices can become a problem and actually hurt sustainability,” he said.
This reflects a maturing industry awareness: while tight supply has driven strong profits, unchecked price surges risk slowing AI adoption and triggering pushback from hyperscalers and cloud providers.
SK Hynix’s expansion plans come as the company navigates a complex global environment. Geopolitical risks, including U.S.-China tensions and export controls, continue to shape supply chain strategies. The firm’s heavy reliance on Nvidia as its primary HBM customer also presents concentration risk, though strong demand across the AI stack has so far mitigated concerns.
The doubling of wafer capacity represents a massive capital commitment in an industry known for cyclical swings. Success will depend on execution, continued AI investment by Big Tech, and the company’s ability to maintain technological leadership in HBM and advanced packaging.
SK Hynix has invested heavily in these areas, but competition from Samsung’s aggressive HBM roadmap and Micron’s innovations will test its position.
For South Korea, the success of SK Hynix and Samsung is strategically vital. The two companies together account for a significant portion of the KOSPI and national exports. Their performance has transformed the country into a central player in the global AI supply chain, but it also concentrates economic risk in a handful of national champions.
Overall, the AI-driven memory boom is reshaping the traditionally cyclical semiconductor industry into something more structurally growth-oriented, at least in the high-end segment. Goldman Sachs and other analysts now see sustained shortages through the end of the decade, suggesting a multi-year supercycle rather than the boom-bust pattern of previous decades.