SEOUL, February 22 (AJP) -The surging demand for artificial intelligence infrastructure could push operating profit at SK hynix beyond $100 billion in the near term, but the chip operation is equally at risk of an unprecedented volatility, said Chey Tae-won, chairman of SK Group.
Speaking at the Trans-Pacific Dialogue (TPD) 2026 held Feb. 20–21 at the Salamander Washington DC, Chey said AI is fundamentally transforming industrial structures worldwide.
The Trans-Pacific Dialogue (TPD) is an annual track-1.5 dialogue organized by the Chey Institute that brings together scholars, policymakers, and opinion leaders from the U.S., Japan, and Korea to discuss pressing global issues and challenges.
“AI is restructuring global industries at their core,” he said. “It is driving extraordinary opportunities, but also unprecedented uncertainty.”
Chey said market expectations for SK hynix’s earnings have risen sharply over recent months.
“In December, estimates suggested operating profit this year would exceed $50 billion. Last month, that was raised to over $70 billion,” he said. “Now, some forecasts suggest it could surpass $100 billion.”
He added that Morgan Stanley recently projected SK Hynix’s operating profit could reach 179 trillion won ($123 billion) this year.
Despite the upbeat outlook, Chey warned against excessive optimism.
“It sounds like great news, but it could also mean a $100 billion loss,” he said. “Volatility is extremely high. New technology can be a solution, but it can also wipe everything out.”
He noted that the pace of change has become so rapid that even one-year business plans are losing relevance.
Chey said AI adoption is fundamentally altering the structure of memory demand, creating acute supply shortages.
“AI memory is in severe shortage, with the gap exceeding 30 percent this year,” he said. “AI infrastructure is absorbing almost all available memory chips.”
He described high-bandwidth memory (HBM), SK Hynix’s flagship product, as a “monster chip.”
“This monster chip is now the real money-maker for our company,” he said. “Its margins exceed 60 percent.”
However, he said distortions have emerged in the market.
“HBM margins are around 60 percent, but in some cases, conventional memory chips are generating margins close to 80 percent,” he said. “That creates a distortion where selling general-purpose chips can be more profitable.”
Chey warned that industries outside the AI ecosystem face growing risks.
“In non-AI sectors, even PC and smartphone makers are struggling to develop new applications,” he said. “Some of them may eventually exit the market.”
“The shortage is completely reshaping the global industrial landscape.”
Chey said AI’s impact is spreading beyond technology into energy and finance.
“If power demand for AI is not met in time, society could face a major crisis,” he said. “We need environmentally friendly and stable energy systems built on new technologies.”
He added that only countries and companies with sufficient capital and resources will be able to shoulder massive AI infrastructure costs and remain competitive.
“In a race that cannot be paused, financial capacity will determine leadership,” he said.
Trilateral cooperation key
Chey emphasized the importance of cooperation among South Korea, the United States and Japan.
“The change we face is not simply a challenge. It is a structural reality that will determine our survival,” he said. “How the three countries cooperate will shape the future order.”
He called for moving beyond diagnosis to concrete solutions.
Meeting with Korean correspondents on the sidelines of the forum, Chey explained his recent series of meetings with global tech leaders, including Jensen Huang, and executives from Meta Platforms and Microsoft.
“I went to apologize for not being able to supply enough memory,” he said. “We simply cannot meet all customer demand right now.”
On recent U.S. court rulings limiting tariffs imposed under the International Emergency Economic Powers Act, Chey adopted a cautious tone. “I will review the ruling before commenting,” he said. Chey also heads the Korea Chamber of Commerce and Industry.
Regarding potential semiconductor tariffs, he added, “We need to see how negotiations unfold. It’s not something I can address in advance. Korea must respond as one team.”
The forum was hosted by the Chey Institute for Advanced Studies, which brings together senior officials, scholars and business leaders from South Korea, the U.S. and Japan to discuss regional security and economic cooperation.
Launched in 2021, this year’s event marked its fifth edition.
Kim Yoo-seok, president of the institute, said the anniversary provided an opportunity to reassess the strategic value of trilateral cooperation amid rapid global change.
“The institute will continue to focus on practical solutions in key areas such as AI and energy that shape national competitiveness,” he said.
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