Key facts
- SK hynix is preparing to list on the Nasdaq, aiming to raise around $28 billion.
- The company's valuation has exceeded $1 trillion, driven by strong demand for its AI memory chips.
- This offering follows a significant turnaround from a period of near-bankruptcy.
- SK hynix holds approximately 60% of the high-bandwidth memory (HBM) market.
- Proceeds from the listing will be used to fund new fabrication plants and a US facility.
SK hynix, the South Korean semiconductor manufacturer, is preparing for a significant listing on the Nasdaq stock exchange, aiming to raise approximately $28 billion. This move marks a remarkable turnaround for the company, which was once on the brink of bankruptcy and relied on job cuts and asset sales for survival. The surge in demand for its high-bandwidth memory (HBM) chips, crucial for AI data centers, has propelled its valuation to over $1 trillion, a threshold also crossed by rivals Samsung Electronics and Micron.
The offering involves 17.79 million new shares in the form of American depositary receipts (ADRs), with cornerstone investors like Baillie Gifford and Coatue Management showing interest. The initial target of $29.6 billion was adjusted downwards due to recent stock price declines. SK hynix's primary listing remains on Seoul's Kospi index, with the Nasdaq listing providing a dollar-denominated avenue for international investors.
The company's valuation has seen an increase of more than 200% this year, fueled by the AI memory boom. Memory prices for DRAM and NAND flash have surged, with manufacturers having already sold most of their production for 2026. SK hynix reported impressive first-quarter results, with revenue exceeding 50 trillion won and operating margins above 70%. The company currently holds about 60% of the HBM market.
However, the timing of the listing is delicate, as the memory market is known for its cyclical nature. Recent sell-offs in chip stocks across Asia and concerns raised by the Bank for International Settlements about the AI boom potentially triggering a financial crash cast a shadow. Despite record profits, Samsung Electronics recently lost over $100 billion in market value.
SK hynix has a long history, tracing its roots to Gukdo Construction founded in 1949, later becoming Hyundai Electronics. The Asian financial crisis in the late 1990s led to significant restructuring. After being renamed Hynix Semiconductor in 2001, it was rescued in 2012 by the SK Group, which invested heavily in HBM technology. The company now employs nearly 46,900 people.