Chipmaker SK hynix wants to raise $10-14B via US IPO
What's the story
SK hynix, a leading South Korean memory chipmaker, is preparing for a potential US listing. The company has filed a Form F-1 with the Securities and Exchange Commission (SEC), hoping to raise between $10 billion and $14 billion. The move comes as part of its strategy to increase its market valuation and strengthen its position in the AI chip supply chain.
Market analysis
SK hynix shares trade at discount
Despite being a key player in high-bandwidth memory (HBM) for AI systems, SK hynix's stock has traded at a discount to its global counterparts. The firm has a market cap of around $440 billion but its valuation multiples remain below those of US-listed semiconductor firms. This discrepancy has raised questions about whether geographical factors, rather than fundamentals, are driving the gap.
Valuation strategy
US listing may close valuation gap
The potential US listing is seen as a way for SK hynix to close a long-standing valuation gap with global peers like Micron. The company has comparable or even stronger production capacity than US-based chipmakers but has historically traded at a discount, partly due to its primary listing in South Korea. The move could also prompt other Korean chipmakers to consider similar strategies for boosting their valuations.
Shareholder influence
SK Square must retain 20% stake
SK Square, the largest shareholder of SK hynix with a 20.07% stake as of December 2025, is required to maintain at least a 20% stake under Korea's holding company rules. Based on current share prices, issuing some new shares could help the company raise $10 billion-$14 billion while keeping SK Square's ownership threshold intact. This comes as part of broader efforts to secure funding for increased capital spending amid rising demand for AI semiconductors.