SK Hynix Seeks $29 Billion With New US Listing to Fund AI Boom

SK Hynix, a leading supplier of high-bandwidth memory (HBM) chips for artificial intelligence, is planning a U.S. American Depositary Receipt (ADR) listing as early as July or August. The South Korean chipmaker, which confidentially filed with the SEC in March, aims to join Wall Street's AI market by trading on the Nasdaq. This move would allow U.S. investors to invest in the company in dollars and put SK Hynix on the same exchange as its competitor, Micron, potentially leading to a revaluation of its shares by investors who recognize memory chips as critical for AI rather than a commodity.

The capital raised from the ADR listing is intended to fund SK Hynix's significant expansion efforts in AI chip production. The company is already investing 31 trillion won into its new Yongin chip cluster south of Seoul and recently shipped samples of its 12-layer HBM4E chips. Proceeds from the listing would further support the expansion of manufacturing systems, including new packaging lines and extreme ultraviolet (EUV) lithography equipment. This strategic move is seen as an effort to deepen its integration into the U.S. AI ecosystem, building on its collaboration with Nvidia and a new advanced semiconductor packaging facility in Indiana.

Estimates for the amount SK Hynix could raise vary. Reuters reported a figure of up to $14 billion, based on a sale of 2% to 3% of shares, which aligns with market capitalization estimates of $9.6 billion to $14.4 billion if 2% to 3% of shares are issued. Korean outlets and some observers, however, have floated figures as high as 40 trillion won ($26 billion to $26.5 billion) or even $20 billion, though SK Hynix has disavowed the 40 trillion won figure as an external estimate. The company is reportedly considering issuing new shares to back the ADRs, a move opposed by the Korea Corporate Governance Forum, which argues it would dilute existing shares and suggests using buybacks instead. SK Hynix has stated its intention to list in 2026, with specific details regarding timing and size still under review.