SK hynix, which overtook Samsung Electronics as Korea's most valuable company by common stock this week, is preparing a U.S. stock listing that could raise up to $20 billion to bankroll its AI memory chip expansion.
The chipmaker is preparing an American depositary receipt (ADR) listing on a U.S. exchange, according to industry sources on Tuesday, with the offering potentially coming as early as July or August. ADRs are securities that allow U.S. investors to trade shares of foreign companies on U.S. exchanges.
For SK hynix, an ADR listing would make it easier for the company to attract investment from global institutional investors and exchange-traded funds.
"An ADR listing would likely lead to immediate buying from funds that currently hold [competitor] Micron, which could trigger a sharp revaluation of [SK hynix] shares," said Kim Sun-woo, a senior analyst at Meritz Securities.
Market observers estimate that SK hynix could raise between $14 billion and $20 billion through the ADR offering.
As of this year’s first quarter, Samsung Electronics held roughly 147 trillion won ($95.78 billion) in cash and cash equivalents, compared with about 54 trillion won at SK hynix.
SK hynix CEO Kwak Noh-jung announced the company aims to secure more than 100 trillion won in net cash over the long term at the company's annual shareholders meeting last March.
Experts see the move as SK hynix hoping to use the influx of dollar-denominated capital to expand its investment capacity and narrow the gap with Samsung Electronics.
SK hynix's Cheongju plant in North ChungcheongNORTH CHUNGCHEONG
Proceeds are expected to go toward expanding production of high-bandwidth memory, a key component in AI computing.
Industry experts expect spending to focus on enhancing manufacturing systems such as new packaging lines, additional clean-room space and more extreme ultraviolet (EUV) lithography equipment.
"We will double memory production by 2030," said SK Group Chairman Chey Tae-won at Computex 2026 on June 2.
SK hynix's capital expenditures rose from 6.59 trillion won in 2023 to 30.17 trillion won last year.
The planned ADR listing is also seen as part of SK hynix's broader effort to deepen its integration into the U.S. AI ecosystem.
SK Group Chairman Chey Tae-won, left, and Nvidia CEO Jensen Huang raise their glasses at a restaurant near Hongdae in Mapo District, western Seoul, on June 5.CHOI GI-UNG
The company is collaborating with Nvidia on next-generation AI memory and is building an advanced semiconductor packaging facility in Indiana.
Earlier this year, SK hynix announced plans to establish a Silicon Valley subsidiary dedicated to AI solutions, a technology that uses machine learning and data analysis to solve complex problems.
Industry observers see the move as part of SK hynix's efforts to embed itself in the U.S. AI ecosystem — having already established manufacturing and research and development ties, it is now extending its reach to capital markets.
SK hynix's ADR plans are parallel to those of semiconductor firms ASML and TSMC when they entered the U.S. capital markets in the 1990s.
The logo of TSMC is displayed at its fabrication plant in Kaohsiung, Taiwan, June 7.REUTERS/YONHAP
Dutch chip-equipment maker ASML was listed on the Nasdaq in 1995 and Taiwan's TSMC was listed on the New York Stock Exchange in 1997.
"Both companies secured stable access to U.S. dollar funding through American capital markets and became investment targets for major global institutions," said a semiconductor industry source who requested anonymity.
ASML later poured substantial resources into developing next-generation EUV lithography systems and TSMC expanded production capacity through massive semiconductor fabrication plants known as Gigafab.
"The ultimate customers in the AI semiconductor market are U.S. Big Techs such as Nvidia, Microsoft, Amazon and OpenAI," said Lee Jong-hwan, a professor in the Intelligent Semiconductor Device Lab at Sangmyung University. "An ADR listing is more than a fundraising tool; it is an effort to become more deeply integrated into the U.S. AI supply chain from a geopolitical standpoint."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
