SK Hynix, a major DRAM, HBM and NAND chip manufacturer, has officially unveiled its US share sale plan, targeting proceeds of up to $36 billion.
The US listing plan was first disclosed in March, with an initial fundraising forecast of $9.6–14 billion and a scheduled August launch. The firm has advanced the listing timeline and substantially raised its fundraising target.
It will issue 17.79 million new American Depositary Receipts (ADRs) on the Nasdaq, with 10 ADRs equivalent to one common share. In a July 6 filing, SK Hynix set a reference ADR price of 242,500 won, translating to 2,425,000 won ($1,582.44) per common share. The final offer price will be finalized on July 9. Once completed, the offering is set to be the second-largest US IPO, only trailing SpaceX’s $85.7 billion listing in June.
Baillie Gifford Overseas and Situational Awareness Partners plan to invest a total of $7 billion in the share offering. The raised capital will fund SK Hynix’s new chip fabrication plants and purchases of high-end ASML extreme ultraviolet lithography equipment.
As core participants in South Korea’s government-led AI semiconductor strategy, SK Hynix and Samsung Electronics will invest 800 trillion won ($520 billion) in new fab construction, including two new HBM production bases in Onyang and Cheonan of South Chungcheong Province. SK Hynix will allocate 400 trillion won ($260 billion) to build new plants in southwestern Korea and invest 100 trillion won ($65 billion) in a new NAND fab at its existing site in Cheongju, North Chungcheong Province.
Micron is also expanding its chip production facilities across the US, Singapore, Taiwan and Japan.
The sweeping expansion in semiconductor capacity is based on the expectation that AI-driven booming demand for HBM, DRAM and NAND will sustain a years-long memory chip super-cycle. However, an early end to the demand boom could trigger market oversupply and sharp price declines.
As part of South Korea’s national AI strategy, local firms including SK Telecom, GS and Naver will jointly invest 550 trillion won ($360 billion) to build AI data centers with a total capacity of 8.4 gigawatts.
South Korean President Lee Jae Myung stated, “The global AI race has evolved into an all-out competition and localized strategic battle. We will set up a dedicated task force in the Blue House to oversee and ensure the full implementation of these key projects.”
Footnote: SK Hynix, Samsung and Micron are facing a US class-action lawsuit filed at the U.S. District Court for the Northern District of California. The lawsuit accuses the three chip giants of colluding to curb chip output and jack up prices since 2022, during which conventional DRAM prices have surged by roughly 700 percent.
Beijing Qianxing Jietong Technology Co., Ltd.
Sandy Yang/Global Strategy Director
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Email: yangyd@qianxingdata.com
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