Memory Prices Are Too High Now: Even SK hynix Admits the Problem

SK hynix is one of the leading memory manufacturers and is making the most of the "memory crisis," with a substantial increase in chip prices linked to high demand from the market (primarily related to the AI sector).

The situation is becoming increasingly complicated and, as confirmed by several reports, there is a risk that the crisis will continue for quite a while – and this means "several years." As reported by Chosun Daily, even Chey Tae-won, the president of the SK Group that controls SK hynix, has acknowledged the problem.

The company president emphasized:

"Currently, memory prices are at abnormally high levels. While AI companies can absorb the cost increases through investments, PC and smartphone manufacturers have no choice but to pass on the semiconductor cost increases to product prices. Since most customers of these products are private individuals, there are limits to price increases. To avoid 'chipflation,' i.e., the increase in chip prices that drives up the costs of finished products, the supply must be expanded."

Is there a precarious balance for the sector? On one hand, production needs to be increased to lower consumer device costs; on the other hand, the shortage of components and the resulting price hikes risk harming even the three giants of the industry (Samsung, Micron, and SK hynix itself).

The high profits currently guaranteed by the situation could open the doors to new competitors or give space to smaller manufacturers that could undermine the leadership of the established giants. This is a dynamic already in play: several Chinese brands are choosing local chips from CXMT and YMTC, a decision driven by Beijing but also adopted by multinationals like Lenovo and Corsair to save costs. Even Apple is contemplating the purchase of CXMT memory, pending approval from the United States.