SK Group Chairman Chey Tae-won cautioned that while SK Hynix's operating profit forecast this year could exceed $100 billion (approximately 145 trillion won), it could equally turn into a $100 billion loss. He pointed to a market distortion where the company must ramp up High Bandwidth Memory (HBM) chip production despite higher margins available from commodity chips.
"We are passing through a new normal era of rapid change and high uncertainty," Chey told reporters on the 20th (local time) at the Trans-Pacific Dialogue (TPD) 2026 event hosted by the Chey Institute for Advanced Studies in Washington, D.C. "I am part of a large company, but I always think about survival. In times of turbulent movement, it is not the strongest that survives, but the most adaptable."
In his welcoming remarks, Chey noted severe supply shortages for AI memory chips. "This year alone, the shortage exceeds 30%, and this creates various problems," he said. "The HBM we produce generates significant revenue for the company with margins exceeding 60%. However, general chip margins are 80%, making it more profitable to sell general chips instead of HBM. This is a distortion."
Chey identified the non-AI sector as another concern. "Even PC and smartphone manufacturers cannot produce applications as they used to. Some of them will probably go out of business. This shortage phenomenon is completely transforming the global industrial structure," he said.
The chairman revealed SK is preparing new solutions to address AI's massive energy consumption. "AI is essentially devouring all the energy and electricity," Chey said. "These days, we are preparing new solutions to build AI data centers together with power plants. Building data centers is all giga-scale work. We need to match one nuclear power plant to each data center."
He explained that the planned "AI Company" SK intends to establish in the United States aims to become an "AI solutions provider" because "competitive data center technology is continuously needed."
Regarding concerns about deteriorating battery industry conditions—including SK On—due to the U.S. administration's termination of electric vehicle support, Chey offered a positive outlook. "Some situations have improved. AI has created significant electricity problems, and now demand is exploding not only for automotive batteries but also for Energy Storage Systems (ESS). It is just a matter of how much time it takes," he emphasized.
Asked about his recent meetings with Meta, Microsoft, and Nvidia CEO Jensen Huang during his U.S. stay, Chey said: "I went to apologize first for not being able to provide memory semiconductors. We are not in a position to supply as much as customers want."
On additional U.S. investment, he noted: "We have no choice but to decide after seeing where the tariff discussions go. For Korea, it is important for the government and businesses to become one team."