Memory chip giant SK hynix could help end ‘RAMmageddon’ with blockbuster US IPO

SK hynix, a South Korean reminiscence chip large already listed on the KOSPI, is laying the groundwork for a possible U.S. itemizing that might reportedly increase an estimated $10 billion to $14 billion.

The corporate introduced this week that it has confidentially filed a Kind F-1 with the itemizing, concentrating on the second half of 2026.

However the true query isn’t simply how a lot it could possibly increase: it’s whether or not a U.S. itemizing might improve its buying and selling worth as one of the essential gamers within the AI chip provide chain.

Regardless of its essential position in high-bandwidth reminiscence (HBM), a key element powering AI programs from corporations like Nvidia, the inventory has traditionally traded at a reduction to international friends, based on a Seoul-based semiconductor analyst. It’s obtained a market cap of round $440 billion, however its valuation multiples stay under these of U.S.-listed semiconductor corporations, elevating questions on whether or not geography, somewhat than fundamentals, is partly driving the hole.

The transfer is broadly seen as an effort to extend its valuation to match international friends like Micron.

“SK hynix’s U.S. itemizing might assist shut a long-standing valuation hole with international friends. Regardless of having comparable – or in some areas stronger – manufacturing capability than U.S.-based chipmakers, the Korean firm has traditionally traded at a reduction, partly attributable to its major itemizing in Korea,” the analyst informed Trendster.

The analyst additionally talked about structural elements shaping the deal. “SK Sq., SK hynix’s largest shareholder, which held 20.07% as of December 2025, is required to take care of a stake of a minimum of 20% beneath Korea’s holding firm guidelines.”

Based mostly on present share costs, issuing roughly 2% in new shares might increase $10 billion to $14 billion whereas permitting SK Sq. to take care of its possession threshold, the analyst stated. (Underneath Korea’s Truthful Commerce Act, holding corporations should keep minimal possession stakes in subsidiaries, a minimum of 20% for listed entities, to retain management.)

There’s precedent. Taiwan Semiconductor Manufacturing Firm (TSMC), for instance, has seen its U.S.-listed shares commerce at a premium to its home shares at occasions, notably in periods of sturdy AI-driven demand, suggesting that cross-listing can affect how traders value the identical underlying enterprise.

The transfer is already rippling throughout the broader Korean chip sector. Following SK hynix’s submitting, some traders are actually pushing Samsung Electronics to contemplate an identical U.S. itemizing. Artisan Companions, a significant shareholder, stated Friday {that a} U.S. itemizing (technically referred to as an American depositary receipt, or ADR), might assist Samsung enhance its valuation, too, in addition to give U.S. retail traders an opportunity to purchase its inventory, based on a Bloomberg report.

A capital push to fulfill AI-driven demand

SK hynix’s deliberate ADR itemizing can also be broadly seen as a transfer to safe funding forward of elevated capital spending to fulfill the rising demand for reminiscence from AI semiconductors.

At its annual normal assembly on March 25, SK hynix CEO Noh-Jung Kwak stated monetary capability shall be key to sustaining development within the AI period, including that the corporate is concentrating on roughly $75 billion (greater than 100 trillion KRW) in internet money to help long-term investments.

Hovering price for reminiscence, and restricted provide, has been one of many bottlenecks slowing AI builds, but in addition impacting different industries, like client avid gamers. It’s a scenario that’s been dubbed “RAMmageddon” and, if nothing out there adjustments, is anticipated to proceed till a minimum of 2027, Nature experiences.

Time will inform if that doomsday prediction holds up. The tech giants are engaged on fixing RAMmageddon in different methods past elevated manufacturing. For example, Google this week launched a tech known as TurboQuant, an ultra-efficient AI reminiscence compression algorithm. It permits AI to turn into vastly extra environment friendly in utilizing reminiscence.

However, the alerts point out that extra reminiscence manufacturing shall be needed as properly. SK hynix is gearing up for a wave of capital-intensive initiatives. The corporate plans to speculate round $400 billion by 2050 to construct a semiconductor cluster in Yongin, South Korea. It is usually developing new amenities in South Korea and Indiana, with deliberate investments of about $25 billion and $3.3 billion, respectively, underscoring the size of capital required.

The chipmaker stated this week it’ll purchase superior excessive ultraviolet (EUV) lithography scanners from ASML by 2027 in a deal value $7.9 billion, aimed toward boosting high-bandwidth reminiscence (HBM) manufacturing for AI.

All of this is able to be supported by a blockbuster U.S. IPO. And that might lead different Korean chip makers to observe.