SK hynix targets $14B US IPO to fuel AI memory chip production and end RAMmageddon crisis

Memory chip giant SK hynix could help end 'RAMmageddon' with blockbuster US IPO | TechCrunch

SK hynix, a South Korean memory chip giant already listed on the KOSPI, is laying the groundwork for a potential U.S. listing that could reportedly raise an estimated $10 billion to $14 billion. The company announced this week that it has confidentially filed a Form F-1 with the the listing, targeting the second half of 2026. But the real question isn't just how much it can raise: it's whether a U.S. listing could increase is trading value as one of the most critical players in the AI chip supply chain. Despite its critical role in high-bandwidth memory (HBM), a key component powering AI systems from companies like Nvidia, the stock has historically traded at a discount to global peers, according to a Seoul-based semiconductor analyst. It's got a market cap of around $440 billion, but it's valuation multiples remain below those of U.S.-listed semiconductor firms, raising questions about whether geography, rather than fundamentals, is partly driving the gap. The move is widely seen as an effort to increase its valuation to match global peers like Micron. "SK hynix's U.S. listing could help close a long-standing valuation gap with global peers. Despite having comparable - or in some areas stronger production capacity than U.S.-based chipmakers, the Korean company has historically traded at a discount, partly due to its primary listing in Korea," the analyst told TechCrunch. The analyst also mentioned structural factors shaping the deal. "SK Square, SK hynix's largest shareholder, which held 20.07% as of December 2025, is required to maintain a stake of at least 20% under Korea's holding company rules." Based on current share prices, issuing roughly 2% in new shares could raise $10 billion to $14 billion while allowing SK Square to maintain its ownership threshold, the analyst said. (Under Korea's Fair Trade Act, holding companies must maintain minimum ownership stakes in subsidiaries, at least 20% for listed entities, to retain control.) There's precedent. Taiwan Semiconductor Manufacturing Company (TSMC), for example, has seen its U.S.-listed shares trade at a premium to its domestic shares at times, particularly during periods of strong AI-driven demand, suggesting that cross-listing can influence how investors price the same underlying business. The move is already rippling across the broader Korean chip sector. Following SK hynix's filing, some investors are now pushing Samsung Electronics to consider a similar U.S. listing. Artisan Partners, a major shareholder, said Friday that a U.S. listing (technically known as an American depositary receipt, or ADR), could help Samsung boost its valuation, too, as well as give U.S. retail investors a chance to buy its stock, according to a Bloomberg report. SK hynix's planned ADR listing is also widely seen as a move to secure funding ahead of increased capital spending to meet the rising demand for memory from AI semiconductors. At its annual general meeting on March 25, SK hynix CEO Noh-Jung Kwaksaid financial capacity will be key to sustaining growth in the AI era, adding that the company is targeting approximately $75 billion (more than 100 trillion KRW) in net cash to support long-term investments. Soaring cost for memory, and limited supply has been one of the bottlenecks slowing AI builds, but also impacting other industries, like consumer gamers. It's a situation that's been dubbed 'RAMmageddon' and, if nothing in the market changes, is expected to continue on until at least 2027, Nature reports. Time will tell if that doomsday prediction holds up. The tech giants are working on solving RAMmageddon in other ways beyond increased manufacturing. For instance, Google this week introduced a tech called TurboQuant, an ultra-efficient AI memory compression algorithm. It allows AI to become vastly more efficient in using memory. Nevertheless, the signals indicate that more memory production will be necessary as well. SK hynix is gearing up for a wave of capital-intensive projects. The company plans to invest around $400 billion by 2050 to build a semiconductor cluster in Yongin, South Korea. It is also constructing new facilities in South Korea and Indiana, with planned investments of about $25 billion and $3.3 billion, respectively, underscoring the scale of capital required. The chipmaker said this week it will acquire advanced extreme ultraviolet (EUV) lithography scanners from ASML by 2027 in a deal worth $7.9 billion, aimed at boosting high-bandwidth memory (HBM) production for AI. All of this would be supported by a blockbuster U.S. IPO. And that could lead other Korean chip makers to follow.

SK Hynix to Float US Shares This Year to Feed AI Memory Surge

SK Hynix Inc. said it seeks to list in the US this year, part of a bid to raise money to keep pace with artificial intelligence's voracious demand for memory. The South Korean supplier of high-bandwidth memory chips made a confidential submission to the US Securities and Exchange Commission for an American Depositary Receipts listing, the company said in a regulatory filing. The company, which is holding its annual shareholders' meeting on Wednesday, did not disclose details regarding the schedule of the listing in the filing. SK Hynix is ramping up investment in new capacity to meet AI's escalating needs for rapid access to data. Earlier this week, it said it plans to spend $8 Billion on cutting-edge extreme ultraviolet lithography chipmaking tools from ASML Holding NV, equipment necessary to scale up quickly. SK Hynix seeks to raise 10 trillion won to 15 trillion won ($10 billion) from a US listing, local media reported Tuesday, an amount that would rank it among the biggest New York listings by foreign companies. Companies including Meta Platforms Inc. and Alphabet Inc. are buying ever-rising amounts of memory by buying millions of Nvidia Corp. AI accelerators that come with big packs of DRAM to run AI applications. That's spurring a race between SK Hynix and Samsung Electronics Co. and Micron Technology Inc. for greater share in the lucrative advanced memory business. Why the AI Boom Will Make Phones, Cars, Devices More Expensive Rampant AI Demand for Memory Is Fueling a Growing Chip Crisis Musk's Terafab Fever Dream Exposes Reality of the AI Chip Crunch Samsung to Invest Record $73 Billion in AI Chip Comeback Bid

SK Hynix files confidentiality for U.S. listing as it rides intense demand for AI memory chips

A SK Hynix flag (R) and a South Korean national flag (L) flutter outside the company's Bundang office in Seongnam on Jan. 26, 2024. SK Hynix revealed Wednesday that it made a confidential filing with the U.S. Securities and Exchange Commission for a potential listing on Wall Street this year. The South Korean memory giant first disclosed its interest in a U.S. listing in December, as it seeks fresh capital to expand production amid surging memory demand driven by the artificial intelligence boom. SK Hynix said in a regulatory filing that it aims to proceed with the listing of American Depositary Receipts within 2026, though details such as the size, method, and schedule of the public offering have not yet been finalized. ADRs are tradable certificates issued by U.S. banks that represent shares in a foreign company. While they tend to trade with lower liquidity than a full U.S. listing, which can deter some investors, ADRs use existing shares rather than new stock, preserving value for existing shareholders. "The final decision on the listing will be made after comprehensively considering the SEC's review of the application, market conditions, demand forecasting, and other relevant factors," the filing said, according to a Google translation. The company said it will make another disclosure when specific details are finalized or within six months. Local media reported the company is considering raising between 10 trillion won and 15 trillion won, or roughly $6.7 billion to $10 billion at current exchange rates. SK Hynix is one of the world's leading suppliers of high-bandwidth memory (HBM) chips used in AI processors. Demand for such memory chips has accelerated so fast that it triggered a global memory shortage and a resulting surge in prices. SK Hynix shares rose over 5% in Seoul trading on Wednesday. The stock surged 274% in 2025 on the strong AI demand and is up around 60% so far this year. The U.S. listing disclosure comes on the day it held its annual shareholders' meeting.

SK Hynix Targets Massive US IPO To Fuel Global AI Chip Expansion - Advanced Micro Devices (NASDAQ:AMD), ASML Holding (NASDAQ:ASML)

SK Hynix is pursuing a major capital raise and expanding production amid intensifying competition in the AI chip market. U.S. IPO Plans To Fund Expansion SK Hynix plans to confidentially file for a U.S. IPO in the second half of 2026, potentially selling 2% to 3% of its shares, Reuters reported on Wednesday. A source told Reuters that the offering could raise up to $14 billion, though details remain undecided. The company intends to use the funds to build new chip factories in South Korea and Indiana to meet rising demand from AI data centers. CEO Kwak Noh-jung said the move aims to improve the company's valuation in the U.S. market. Analysts Split On Strategy And Shareholder Impact However, the Korea Corporate Governance Forum warned that issuing new shares could dilute the holdings of existing investors. IBK Asset Management fund manager Kim Hyun-su also criticized the plan, suggesting the company could use existing shares and buybacks instead. Heavy Investment And Rising Competition In AI Chips Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.