AI boom could lead to shortage of data storage chips

The chairman of South Korea’s SK Group has predict that the fast-growing demand for AI could lead to a shortage of high-bandwidth memory chips. A Solidigm executive in the U.S. has told, that the same surge in AI demand might also cause storage drives to run low.

The memory chips placed very close to computing chips are essential for servers made by companies like Nvidia. Recently, at Nvidia’s developer conference, SK Group Chairman Chey Tae-won said that there might not be enough high-bandwidth memory to meet demand until 2030 because AI systems need so much of it.

New AI-powered tools can now understand huge amounts of data that human mind usually couldn’t turn into useful business insights. Nvidia also introduced new technologies to help move data faster from storage drives to its chips.

Greg Matson, senior vice president at Solidigm—the SK Hynix unit that sells storage drives to businesses, said this is leading to higher demand for solid-state drives. Speaking on the sidelines of Nvidia’s conference last week, he added that new AI systems expected later this year may need about 35% more storage than earlier ones.

Matson said, "It's going to be tight," about the supplies of storage memory from now till 2030.

"We'll be coming out with higher-density drives from a silicon perspective later this year, and even expand our manufacturing output as well," Matson said. "But can,we keep up? No, we can't. I could sell twice as much as I am today."

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