SK hynix, a leading South Korean memory chip manufacturer listed on the KOSPI, is preparing for a potential U.S. listing that could reportedly raise between $10 billion to $14 billion. The company announced this week a confidential filing of a Form F-1 for the listing, targeting the second half of 2026.
The key issue isn’t just the amount of funds raised but whether a U.S. listing could enhance its trading value as a major player in the AI chip supply chain. Although SK hynix plays a critical role in high-bandwidth memory (HBM) essential for AI systems, its stock has historically traded at a discount compared to global peers, as noted by a Seoul-based semiconductor analyst. Despite a market cap of around $440 billion, its valuation multiples are lower than those of U.S.-listed semiconductor firms, suggesting that geography, rather than fundamentals, may be influencing this disparity.
This move aims to increase SK hynix’s valuation to be on par with global peers like Micron. “SK hynix’s U.S. listing could help bridge the long-standing valuation gap with global peers. Despite similar or superior production capacity compared to U.S. chipmakers, the Korean company has historically traded at a discount, partly due to its primary listing in Korea,” the analyst explained to TechCrunch.
The analyst also pointed out structural factors affecting the deal. “SK Square, the largest shareholder of SK hynix, which held 20.07% as of December 2025, must maintain a stake of at least 20% according to Korea’s holding company rules.”
Current share prices suggest that issuing around 2% in new shares could raise $10 billion to $14 billion while SK Square retains its ownership threshold. (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 is precedent for such moves. Taiwan Semiconductor Manufacturing Company (TSMC), for example, has experienced its U.S.-listed shares trading at a premium to domestic shares at times, especially during periods of strong AI-driven demand, indicating that cross-listing can influence how investors value the same business.
SK hynix’s move is impacting the broader Korean chip industry. Following its filing, some investors are now urging Samsung Electronics to consider a similar U.S. listing. Artisan Partners, a major shareholder, suggested that a U.S. listing (via an American depositary receipt or ADR) could enhance Samsung’s valuation and provide U.S. retail investors access to its stock, according to a Bloomberg report.
A capital push is underway to address AI-driven demand. SK hynix’s planned ADR listing is perceived as a strategy to secure funding for increased capital spending to meet rising memory demands from AI semiconductors. At the annual general meeting on March 25, SK hynix CEO Noh-Jung Kwak stated that financial capacity is crucial for growth in the AI era and that the company aims to secure approximately $75 billion (over 100 trillion KRW) in net cash to support long-term investments.
Rising memory costs and limited supply have been bottlenecks affecting AI builds and other industries, including consumer gaming, a situation dubbed ‘RAMmageddon’. This is expected to continue until at least 2027, according to Nature reports.
Efforts are being made to address RAMmageddon beyond increasing manufacturing. For instance, Google introduced a technology called TurboQuant this week, an ultra-efficient AI memory compression algorithm improving memory efficiency.
Despite these advancements, signals indicate the necessity for more memory production. SK hynix is preparing for a series of capital-intensive projects, planning to invest around $400 billion by 2050 to build a semiconductor cluster in Yongin, South Korea. The company is also constructing new facilities in South Korea and Indiana, with planned investments of about $25 billion and $3.3 billion, respectively, highlighting the scale of required capital.
The chipmaker also announced plans to acquire advanced extreme ultraviolet (EUV) lithography scanners from ASML by 2027 in a $7.9 billion deal to boost HBM production for AI.
Support from a major U.S. IPO could lead other Korean chip manufacturers to follow suit.