SK Hynix Launches $28B US Listing to Capitalise on AI Memory Boom
Source: CNA Business
South Korean chipmaker SK Hynix is launching a US listing on the Nasdaq to raise approximately $28 billion, capitalising on surging global demand for AI memory chips. The listing removes an 'accessibility discount' for US investors and ranks as one of the world's largest new share sales, trailing only SpaceX's recent record IPO.
South Korean memory chip giant SK Hynix is launching a US listing on the Nasdaq to raise approximately $28 billion, riding the global AI boom with one of the largest share sales in history. The depository receipt offering ranks as the second-biggest ever, behind only SpaceX's $85.7 billion IPO last month.
The listing removes what analysts call an 'accessibility discount' — SK Hynix has been among the most important companies in the world that most US institutions could not easily own. The company is a key supplier of high-bandwidth memory (HBM) chips used in AI systems by Nvidia and Google, and its shares have surged 273 per cent this year as the AI memory shortage drives prices higher.
Proceeds from the offering will fund chip factory construction in South Korea and equipment purchases including an extreme ultraviolet scanner from Dutch manufacturer ASML. The company is expected to join the Philadelphia SE Semiconductor index, potentially triggering a wave of passive investment. SK Hynix and Samsung Electronics will anchor a $576 billion government-backed chip investment program in South Korea's southwest.
Some investors remain cautious about the memory cycle's timing. Standard Chartered's chief investment officer notes the cycle is now in its mid-stage, while JPMorgan highlights that AI memory's share of cloud service providers' capex is projected to exceed 70 per cent next year — raising questions about sustainability. The final listing price is due Thursday, with trading expected to begin Friday.
Why it matters for Singapore: SK Hynix has maintained a significant presence in Singapore through its subsidiary SK Hynix Asia Pte Ltd, incorporated here since 1991. The chipmaker's deepening integration into US capital markets signals how deeply Singapore sits within the global AI memory supply chain. As the Singapore office facilitates regional distribution and customer relationships across Southeast Asia, the company's Nasdaq listing could open new avenues for institutional investors here to gain direct exposure to one of AI's most essential hardware suppliers.