Abnormal! SK Group Chairman Warns: High Memory Prices Are Not Good, Could Trigger 'Chipflation'

In response to the sustained surge in memory prices, SK Group Chairman and Korea Chamber of Commerce and Industry Chairman Choi Tae-won recently issued a public warning, stating that current prices are 'abnormal.' He emphasized that excessively high prices not only suppress market demand but could also trigger geopolitical tensions.

Choi, in a recent interview with Korean media outlet EtNews, stressed: 'Memory prices should come down.'

He pointed out that if high prices persist, they will eventually lead to higher prices for PCs and smartphones, causing 'chipflation.' Once costs are passed on to consumers, willingness to upgrade devices will significantly decrease, thereby undermining the foundation of the entire tech industry.

Choi urged the industry to proactively reduce profits and expand supply to protect and promote sustained market growth. 'Only focusing on picking and eating all the apples from the tree in front of you is not a long-term strategy,' he said, using this metaphor to emphasize the importance of sustainable management.

While Choi acknowledged the importance of sustainability, he also admitted that even with full industry efforts to ramp up production, it would be difficult to keep pace with the explosive demand driven by AI.

Choi estimated that AI-related demand will grow by 60% to 100% next year, while supply-side growth will lag far behind.

Furthermore, Choi predicted that even if memory shortages ease in the future, the bottleneck for the AI industry will shift to energy infrastructure. As data center construction accelerates, power equipment, cables, and related raw materials are already in short supply. Energy supply will become the key constraint in the next phase of industrial development.