Chey Tae-won: Memory demand next year will rise more than 50%, and fabs should also be built in the U.S.

JEJU, South Korea — "I do not know whether I should even use the word 'chaos,' but we are facing enormous lobbying and pressure from companies over the memory semiconductor supply crunch."
At a recent press briefing held during the KCCI Jeju Forum, Chey Tae-won, who serves as both KCCI chairman and chairman of SK Group, described the surge in global demand for memory semiconductors. He forecast that the gap between supply and demand would widen even further next year. "Memory chip supply is expected to increase very little next year, while demand will rise by at least 50% to 60%," he said. He also said he is reviewing plans to build semiconductor fabs in the United States, alongside efforts to advance semiconductor clusters in Yongin and Honam.
■ Reviewing sites around the world, including the U.S.
Chey also said the issue of securing semiconductors could develop into a national security concern. "Right now, the pressure is coming from companies, but in the future, it is highly likely that pressure will start coming from foreign governments," he said.
He said he is currently searching for the best locations for new semiconductor plants both in South Korea and overseas. "We need to do our best and expand production as quickly as possible. At this point, we are trying to build wherever we can," he said. "If possible, I believe we should build in the U.S. as well as in Honam. We need to look around the world, identify where we can move fastest and build at the largest scale, and then prioritize those sites. Building quickly has become the lifeline of Korea's semiconductor industry." U.S. Secretary of Commerce Howard Lutnick has recently called on Korean semiconductor companies to invest in the United States. The government has also said it will move quickly to establish the Honam semiconductor cluster.
■ "The Yongin cluster still lacks power and water"
On criticism that the selection of the Honam semiconductor cluster site reflects government intervention, Chey said, "We will continue to examine whether the conditions are sufficient, but we have not found any other place in South Korea that fully meets the conditions the country needs." He added, "Infrastructure has to be provided by the government or local authorities. Our position is simple: if they do that well, we will build there."
As for the decision to move up the Yongin semiconductor cluster timeline by 12 years from 2045, he said, "Even within our company, there is a view that 'absorbing all of this is not such an easy task.'" He added, "Yongin still lacks water and power, and we also cannot ignore safety issues such as major industrial accidents."
On the possible exemption from South Korea's 52-hour workweek rule to speed up semiconductor development, Chey said, "I heard that if a mega-special zone is created and companies move to the provinces, a suspension of the 52-hour rule will be considered." He added, "Employers should follow the 52-hour rule, but if workers want to work more, they should be allowed to do so. That is not even permitted now. I hope free will is respected."
■ "If bonuses hurt stakeholders' interests, we need to address it"
On the bonus controversy that began at SK hynix, he said, "It would be a real problem if everyone disliked it, but I do not see it that way. Let's watch a little longer." He added, "If the happiness of members harms the interests of stakeholders, then we need to address that issue for the sake of sustainable happiness."
Regarding the government's plan to build a 1,000 trillion won AI data center as part of its three major mega-projects, he said he was confident there would be no major problems with securing customers, infrastructure, or financing. "If you are building it, that already means you have customers," he said. "As a financing condition, there must be a long-term contract of at least five years and up to 15 years before you can say the project has started. The project moves forward and construction begins only when customers are secured and equipment, land, and power are all matched." He also described the project as "almost the first step toward an electrified society." He added, "The government also seems clear that renewable energy alone will not be enough. For that reason, it will consider all baseload power sources, starting with nuclear power."
On institutions that need improvement, Chey said, "Our system does not move beyond the framework that says if you are poor, you should receive something, and if you are rich, taxes should be raised." He expressed concern that "small and mid-sized companies no longer want to grow larger. Companies think growth is no longer necessary, but then where do growth engines and motivation come from?"
On the Ministry of Employment and Labor's proposal to distribute excess profits from AI, he said, "Since the government handles things with the taxes we pay, there is no reason for us to object." He added, "We may need to do something to make stakeholders happy, but I am not sure whether that excess-profit distribution idea is the direction we are thinking of. I still do not fully understand the concept."
ehcho@fnnews.com Reporter