Raising $10 Billion to Expand Capacity, Can SK Hynix Break the Memory Industry Landscape by Listing in the US?

TradingKey - The surge in memory chip demand fueled by the AI wave is driving leading manufacturers to accelerate their global footprint and capital maneuvers.

South Korean memory giant SK Hynix is planning to list in the U.S. via American Depositary Receipts (ADRs), aiming to raise 10 trillion to 15 trillion won (approximately $6.7 billion to $10 billion). The proceeds will primarily fund AI-related infrastructure and capacity expansion to consolidate its leadership in the High Bandwidth Memory (HBM) sector.

According to industry sources, SK Hynix plans to advance its ADR listing through the issuance of new shares, with clear objectives for the proceeds. On one hand, the capital will be used to expand HBM capacity and strengthen supply chain ties with AI computing giants such as Nvidia ( NVDA) and others. On the other hand, it will support the development of the Yongin semiconductor cluster in South Korea to establish an R&D and manufacturing base for next-generation AI semiconductors.

An SK Hynix spokesperson stated that the company is evaluating several options to enhance shareholder value, including an ADR listing, though no final decision has been reached.

Capital Allocation and Valuation Reshaping

As the industry leader with a 57% global HBM market share, SK Hynix has seen its stock price surge by more than 360% over the past year, becoming a core driver of the Korea Composite Stock Price Index (Kospi)'s gains.

However, at the valuation level, a significant gap remains between SK Hynix and its U.S. peers—currently, its price-to-earnings ratio is only about 5.7 times, while Micron Technology ( MU) has a P/E ratio of 12.1 times. Market analysis suggests that a U.S. listing will help SK Hynix directly connect with global tech stock pricing centers and attract more U.S. institutional investors, potentially narrowing this valuation gap.

Ha Seok-heun, Chief Investment Officer at Eugene Asset Management, noted that once U.S. capital can directly participate in AI infrastructure investment through ADRs, SK Hynix's technical moat in the HBM sector will be more fully reflected in its valuation premium.

Beyond valuation rerating, a U.S. listing can provide long-term capital liquidity support for SK Hynix. If successfully included in major global tech indices such as the Philadelphia Semiconductor Index, massive inflows from passive investment funds and ETFs will provide stable support for its stock price.

This path has been validated by TSMC ( TSM ), which attracted significant overseas capital after listing in the U.S. via ADRs, with the valuation gap between its U.S. and Taiwan shares once exceeding 30%.

The scale of the new shares SK Hynix plans to issue accounts for approximately 2.4% of its total share capital, roughly equivalent to the 15.3 million treasury shares cancelled earlier this year; this arrangement is also seen as a complementary measure by the company to optimize its equity structure and enhance shareholder value.

Notably, SK Hynix's U.S. strategy has long extended beyond the capital level. The company plans to spend $10 billion to establish an independent AI legal entity in the U.S. and restructure its California subsidiary, Solidigm, into a global AI strategic R&D center.

Meanwhile, an advanced packaging plant in Indiana is also accelerating construction. From capital financing and R&D to manufacturing implementation, SK Hynix is building a complete AI supply chain ecosystem in the U.S. to address shifts in the global semiconductor landscape and the rapid iteration of AI technology.

SK Group Chairman Chey Tae-won previously stated at the NVIDIA GTC 2026 conference that a U.S. listing is a key step in the company's globalization strategy, helping it attract global capital attention and enhance its international brand influence.

Currently, SK Hynix has invited several investment banks to bid for the role of listing underwriters. If the transaction is eventually finalized, it will become one of the largest U.S. listings by a foreign company in recent years and will further highlight the intensity of global capital competition in the AI sector.

Investing $8 Billion in EUV Procurement

While advancing its capital operations, SK Hynix is also ramping up investment in technology and production capacity. On Tuesday, the company announced it will spend approximately 11.95 trillion Korean won (about $7.97 billion) to procure extreme ultraviolet (EUV) lithography machines from the Dutch equipment manufacturer ASML. This investment represents nearly 10% of the company's total assets as of the end of 2024 and is one of its largest-ever equipment purchases aimed at securing dominance in AI memory.

According to the announcement, the execution cycle for this order is approximately two years, covering equipment procurement, installation, and upgrade services, with full completion expected by December 2027.

SK Hynix stated that the procured EUV equipment will primarily be used to meet the production capacity requirements for core AI memory products such as HBM (High Bandwidth Memory), while also supporting expansion plans for general-purpose DRAM. This move will also directly help the company accelerate the implementation of its sixth-generation (1c) DRAM manufacturing process.

The process technology race in the memory industry has reached a fever pitch, with Samsung having already taken the lead in applying the 1c process to HBM4 products, exerting direct competitive pressure on SK Hynix.

Beyond equipment procurement, SK Hynix's pace of capacity expansion is also accelerating. Equipment installation at the second cleanroom of the M15X fab in Cheongju began two months ahead of schedule, and both cleanrooms have entered the stage of full operational readiness. The company will rely on this facility to meet next-generation HBM demand until the first fab at the Yongin semiconductor cluster begins production in 2027.

SK Hynix has established a significant presence in the EUV sector and is the world's first manufacturer to introduce High-NA EUV technology into the mass production of memory chips—currently deploying the technology at its M16 fab in Icheon to produce memory chips.

The company plans to bring in approximately 20 more EUV units by 2027, at which point its EUV fleet will double in size compared to current levels. With total investment expected to exceed 6 trillion won, the move underscores its strategic determination to place a heavy bet on the competition for next-generation memory manufacturing.