SK Hynix Seeks $29.4B in US ADR to Fund AI Memory Fabs

SK Hynix announced plans to raise up to $29.4 billion through an American Depositary Receipt offering on Nasdaq to fund construction of new chip fabrication plants and purchase advanced semiconductor equipment for expanded high-bandwidth memory production used in artificial intelligence data centers.

If the offering is completed at the top of the proposed range, it would exceed a $25 billion U.S. debut completed in 2014 and rank as the largest U.S. listing by a Korean company. The company said its primary listing will remain in South Korea and that it did not set a timetable or final price; the ultimate size will depend on market conditions and required approvals.

SK Hynix intends to invest all proceeds in expanding manufacturing capacity in South Korea and in advanced tools, including extreme ultraviolet (EUV) scanners supplied by ASML. The company described the funds as earmarked for capacity expansion and equipment purchases to meet projected demand for high-end memory used in AI data centers.

The company has become a major supplier of high-bandwidth memory used in Nvidia’s AI processors. SK Hynix’s market capitalization is about $1.2 trillion after a share-price rise of more than 280% in 2024. The stock recently overtook Samsung Electronics to make SK Hynix South Korea’s most valuable listed firm and the second Korean company to pass a $1 trillion market value.

Analysts highlighted the potential valuation effects of a U.S. listing. Ryu Young-ho, senior analyst at NH Investment & Securities, noted, “The most attractive benefit for investors is that SK Hynix will trade on Nasdaq alongside rival Micron, giving the company an opportunity to be re-rated in the U.S. market.” CLSA senior analyst Sanjeev Rana observed that expectations of a higher U.S. valuation have already supported the stock rally and that parity with Micron’s valuation would likely affect Korea-listed shares.

A U.S. listing would provide SK Hynix access to larger pools of capital and to U.S.-based index funds and exchange-traded funds that track technology benchmarks. Those funds typically add U.S.-listed securities to their portfolios, which could create passive investment flows into the ADRs.

Market participants noted the financing will expand SK Hynix’s production capacity and could influence competition in the memory chip market. Micron Technology has also seen large gains this year, with shares up roughly 269% year-to-date, though they experienced a one-day drop of about 13% amid concerns about the sustainability of aggressive AI-related spending.

Shares of ASML, a supplier of EUV scanners, rose following the listing announcement. American Depositary Receipts allow foreign companies to list in the United States and make it easier for U.S. investors to buy shares without purchasing the primary foreign-listed stock.