SK Group Chairman Chey Tae-won has pledged to increase production of AI memory chips in response to surging demand driven by global data center construction. The billionaire leader of South Korea's second-largest conglomerate made the commitment during a February 20 conference in Washington.

Chey described high-bandwidth memory (HBM) chips as "monster chips" that are generating massive profits for SK Hynix. Over the past year, the chipmaker's stock price has more than tripled due to record-breaking earnings.

While Chey didn't specify the scale of expansion for the chip subsidiary, SK Hynix stated in January that its 2026 capital expenditure would increase significantly compared to last year to meet HBM chip demand from companies like Nvidia, whose accelerators train and run AI services.

U.S. tech companies including Microsoft and Meta are investing approximately $650 billion in infrastructure this year amid AI technology competition. This record spending is triggering a global memory chip shortage in a market dominated by SK Hynix, its South Korean rival Samsung Electronics, and U.S.-based Micron Technology. SK Hynix has already sold out its 2026 memory chip supply, with Micron experiencing similar conditions for its HBM products.

However, Chey simultaneously warned about potential future losses due to rapid technological changes that could alter the competitive landscape.

According to Chey, analysts' average forecast for SK Hynix's full-year 2026 operating profit rose from around $50 billion at the end of last year to $70 billion in January, with some projections being revised upward again to exceed $100 billion.

"That sounds like good news," Chey remarked, "but it could just as easily turn into a $100 billion loss."

He also highlighted growing infrastructure challenges, noting that SK Group is currently considering building power plants near AI data centers since insufficient energy supply could prove "disastrous."