SK hynix Considers Major US IPO to Alleviate Memory Chip Shortage

SK hynix, a South Korean memory chip leader already traded on the KOSPI, is preparing for a potential U.S. stock listing that could reportedly raise between $10 billion and $14 billion.

The company announced this week it has confidentially submitted a Form F-1 with U.S. regulators, targeting a listing in the second half of 2026.

The key question, however, extends beyond fundraising: it's whether a U.S. listing can elevate its market valuation as a pivotal player in the AI chip supply chain.

Despite its crucial role in producing high-bandwidth memory (HBM)—essential for AI systems from companies like Nvidia—the stock has historically traded at a discount compared to global competitors, according to a Seoul-based semiconductor analyst. While its market capitalization is approximately $440 billion, its valuation multiples remain below those of U.S.-listed chip firms, prompting debate over whether geography, rather than business fundamentals, contributes to this gap.

The move is widely viewed as an attempt to align its valuation with global peers such as Micron.

"A U.S. listing for SK hynix could help narrow a persistent valuation gap with international peers. Despite possessing comparable—and in some respects superior—production capabilities relative to U.S. chipmakers, the Korean company has long traded at a discount, partly due to its primary listing being in Korea," the analyst told TechCrunch.

The analyst also highlighted structural considerations influencing the deal. "SK Square, SK hynix's largest shareholder with a 20.07% stake as of December 2025, is required to maintain at least a 20% ownership under South Korea's holding company regulations."

Based on current share prices, issuing roughly 2% in new shares could raise $10 billion to $14 billion while enabling SK Square to preserve its ownership level, the analyst noted. (Under South Korea's Fair Trade Act, holding companies must maintain minimum stakes—at least 20% for listed subsidiaries—to retain control.)

There is precedent for this strategy. Taiwan Semiconductor Manufacturing Company (TSMC), for instance, has seen its U.S.-listed shares trade at a premium to its Taiwan-listed shares at times, especially during periods of strong AI-related demand. This suggests a cross-listing can affect how investors value the same core business.

The move is already sending waves through South Korea's broader chip sector. Following SK hynix's filing, some investors are urging Samsung Electronics to consider a similar U.S. listing. According to a Bloomberg report, major shareholder Artisan Partners stated on Friday that an American Depositary Receipt (ADR) listing could help boost Samsung's valuation and provide U.S. retail investors access to its stock.

A Capital Push to Meet AI-Driven Demand

SK hynix's planned ADR listing is also widely interpreted as a strategy to secure funding for anticipated increases in capital expenditure, driven by rising demand for memory from AI semiconductors.

At its annual general meeting on March 25, SK hynix CEO Noh-Jung Kwak stated that financial strength will be crucial for sustaining growth in the AI era. He added that the company aims to accumulate approximately $75 billion (over 100 trillion KRW) in net cash to support long-term investments.

Soaring memory costs and constrained supply have become bottlenecks, not only slowing AI infrastructure development but also affecting other sectors like consumer gaming. This situation, dubbed 'RAMmageddon,' is projected to persist until at least 2027 if market conditions remain unchanged, according to a Nature report.

Whether this dire forecast materializes remains to be seen. Major tech companies are exploring solutions beyond simply increasing production. For example, Google recently introduced TurboQuant, an ultra-efficient AI memory compression algorithm designed to make AI significantly more memory-efficient.

Nevertheless, indicators suggest that expanded memory production will also be necessary. SK hynix is preparing for a series of capital-intensive projects. The company plans to invest around $400 billion by 2050 to develop a semiconductor cluster in Yongin, South Korea. It is also building new facilities in South Korea and Indiana, with planned investments of approximately $25 billion and $3.3 billion, respectively, highlighting the substantial capital required.

This week, the chipmaker also announced it will acquire advanced extreme ultraviolet (EUV) lithography scanners from ASML by 2027 in a $7.9 billion deal, aimed at boosting HBM production for AI applications.

A landmark U.S. initial public offering would help finance all these ambitions. And it might just prompt other Korean chipmakers to follow suit.