SK Group Forecasts 50% Surge in Semiconductor Demand Amid Supply Crunch

The global semiconductor market faces a severe supply crunch next year as demand surges while new production capacity remains stagnant. This imbalance matters because buyers and investors should expect tighter availability and higher prices for key components. SK Group Chairman Choi Tae-won highlighted this divergence during a media forum in Jinzhou, noting that the supply-demand gap is likely to widen significantly.

SK Group Chairman Choi Tae-won warns that near-zero new capacity will widen the gap between surging AI needs and available hardware

Choi pointed to artificial intelligence as the primary driver of this growth, forecasting that AI-related semiconductor demand will increase by 60% to 100% compared to this year. Overall semiconductor product demand is also expected to grow by at least 50% to 60%. These figures suggest that the industry is shifting from a period of oversupply to one of acute scarcity.

A critical factor in this shortage is the near-zero addition of new supply capacity for next year. Choi emphasized that new supply next year will be almost zero, which directly contributes to the widening gap. This lack of new production lines means existing manufacturers cannot easily scale to meet the rising demand from AI infrastructure projects.

Memory chips remain a focal point for SK Group, with Choi stating that demand for these components will continue to exist. He believes this persistent demand will support an upward trend in stock prices over time. Investors and industry watchers should monitor memory chip availability closely, as this segment appears to be a key indicator of the broader market health.

SK Group's forecast underscores the challenges facing the semiconductor industry as it navigates the AI boom. The combination of surging demand and stagnant supply creates a difficult environment for manufacturers and buyers alike. Stakeholders should prepare for continued tightness in the market as the year progresses.