Memory costs are hitting consumers hard, and SK hynix warns that the current pricing crisis threatens the entire PC and smartphone markets. The company argues that rising semiconductor prices are forcing device makers to raise their own prices, a trend the chairman calls 'chipflation.' This shift matters because it directly impacts what buyers pay for laptops and phones in the near future.
Chairman Chey Tae-won says device makers must pass rising semiconductor costs to consumers
SK hynix Chairman Chey Tae-won delivered these remarks during a press conference with the Korea Chamber of Commerce and Industry. He stated that memory prices are currently at an abnormally high level that is unsustainable for the broader industry. The warning highlights the tension between component suppliers and the manufacturers who build the devices users actually buy.
To prevent 'chipflation,' where rising chip prices drive up finished product costs, supply must be expanded, Chey said. The company suggests that memory makers should accept smaller profit margins to protect the market and ensure sustainable growth. SK hynix warns that indefinite price increases without new factory construction will shrink the market and invite new competitors like Chinese manufacturer CXMT.
SK hynix is currently scouting locations for new semiconductor manufacturing, including potential expansion in the U.S. The chairman emphasized that every viable site worldwide must be identified, prioritized, and developed swiftly. This move aims to increase supply and stabilize the market, though the company has not confirmed a final decision or specific site yet.
The outlook for 2027 remains uncertain, with the chairman describing the market conditions as 'chaotic.' SK hynix is pushing for supply expansion to mitigate these risks and protect consumer tech affordability. The company continues to evaluate global sites for new factories to address the ongoing DRAM shortage.
Source: TweakTown
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