South Korea chip maker SK hynix rides AI boom raising $26.5bn in huge US listing
Summary
South Korean chip maker SK hynix is raising $26.5 billion through a major stock sale on the US Nasdaq market. The company benefits from growing demand for advanced memory chips used in artificial intelligence (AI) data centers and plans to use the funds to expand its chip manufacturing facilities in South Korea.Key Facts
- SK hynix plans to sell about 18 million shares on the Nasdaq to raise $26.5 billion.
- The listing is one of the largest stock sales ever and was oversubscribed more than seven times.
- SK hynix supplies advanced memory chips to Nvidia, a major AI technology company.
- The company’s shares have risen over 220% this year on the Seoul stock exchange.
- SK hynix will list via American depositary shares (ADS), with each ADS representing one-tenth of a normal share.
- The money raised will help build a new chip fabrication hub near Seoul and an advanced packaging plant in Cheongju.
- SK hynix, Samsung, and Micron all recently reached market values above $1 trillion due to AI chip demand.
- The AI chip boom is causing shortages and price increases for other memory chips used in consumer electronics.
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