SK Group Chairman Warns That Customers Will Use Less Memory Unless DRAM Supply Grows
12 May 2026 at 12:43
Memory makers like Samsung, SK hynix, and Micron are currently striving to find the delicate balance between supplying the world with enough DRAM and expanding their production capacity by placing large new orders for the semiconductor fabs used to produce the memory. According to SK Group chairman Chey Tae-won, who also oversees SK hynix, if companies like SK hynix do not increase their memory supply, customers will find ways to use less memory by optimizing their infrastructure and software for much lower utilization. At present, hyperscalers and AI accelerator makers such as AMD, NVIDIA, and others are securing as much memory as possible. This is part of AI data center expansion, which requires more GPU and CPU DRAM to support large training runs and maintain massive model inference, now reaching tens of trillions of parameters and needing hundreds of gigabytes of system memory to host a single model for just a few users.
This demand has created a supply chain issue where memory makers are selling all of their available DRAM months in advance but are hesitant to significantly expand manufacturing capacity, despite recognizing the increase in demand years ago. Memory makers are the first to notice rising demand, and their reluctance to increase manufacturing capacity is contributing to the current memory shortage. However, they are also wary of expanding production capacity as it takes years to build new memory fabs, just as projected demand is expected to stabilize. SK hynix has ordered about 20 Low-NA EUV machines from ASML for their expansion plans, which will also support future storage production once the tools are operational. However, all of this added capacity is still years away, and we will remain in a tight situation for a little while longer.
This demand has created a supply chain issue where memory makers are selling all of their available DRAM months in advance but are hesitant to significantly expand manufacturing capacity, despite recognizing the increase in demand years ago. Memory makers are the first to notice rising demand, and their reluctance to increase manufacturing capacity is contributing to the current memory shortage. However, they are also wary of expanding production capacity as it takes years to build new memory fabs, just as projected demand is expected to stabilize. SK hynix has ordered about 20 Low-NA EUV machines from ASML for their expansion plans, which will also support future storage production once the tools are operational. However, all of this added capacity is still years away, and we will remain in a tight situation for a little while longer.
