SK Group Chairman Chey Tae-won said that the rapid growth in AI data centers is creating “bottlenecks” for chips and other key supplies, Reuters reported.
South Korea’s SK Group’s SK hynix (OTCPK:HXSCF) is a major supplier of High-Bandwidth Memory, or HBM, chips to Nvidia (NASDAQ:NVDA).
“I believe these rapid developments and changes are ultimately leading to bottlenecks around the world,” said Chey, who also leads the Korea Chamber of Commerce and Industry, the report added.
“Now, a lot of AI data centres need to be built, and for everything that goes into them, from chips to services, they are creating bottlenecks, I think,” said Chey at a business side-event for the Asia-Pacific Economic Cooperation, or APEC, summit this week in South Korea, the report noted.
Chey noted that global competition over AI was so intense that major economies like the U.S. and China had released national AI strategies to take the lead, the report added.
SK Group did not immediately respond to a request for comment from Seeking Alpha.
Chey and several global business leaders are gathering in Gyeongju, South Korea, for APEC events ahead of the arrival of U.S. President Donald Trump and Chinese President Xi Jinping.