Media365
South Korean semiconductor giant SK Hynix has launched a landmark U.S. share sale worth approximately $28 billion, marking one of the world’s largest overseas equity offerings as the company seeks to capitalize on surging global demand for artificial intelligence (AI) infrastructure and broaden its access to international investors.
The world’s second-largest memory chipmaker plans to issue 17.79 million new shares in the form of American Depositary Receipts (ADRs) on the Nasdaq, with every 10 ADRs representing one common share. Regulatory filings show the final offer price will be determined on Thursday before trading begins on Friday, a move that could significantly raise the company’s profile among global institutional and retail investors.
Investor appetite for the offering appears robust despite recent volatility in semiconductor stocks. SK Hynix said leading investment firms, including Baillie Gifford Overseas, funds managed by Coatue Management, and Situational Awareness Partners, have collectively expressed interest in purchasing up to $7 billion worth of ADRs, highlighting continued confidence in companies positioned at the heart of the AI supply chain.
The listing comes as AI adoption continues to fuel unprecedented demand for advanced memory chips, particularly High Bandwidth Memory (HBM), a critical component used in training and running large AI models. SK Hynix has emerged as one of the biggest beneficiaries of this trend, outperforming several industry rivals and becoming a key supplier of HBM chips to technology giants such as Nvidia and Google.
Industry experts believe the Nasdaq listing represents more than a capital-raising exercise. Analysts say it could help close the valuation gap between SK Hynix and its US-listed peers by improving accessibility for global investors who previously had limited exposure to the company’s Seoul-listed shares. Portfolio managers also expect the listing to pave the way for the stock’s inclusion in major US semiconductor indices, potentially attracting significant passive investment from exchange-traded funds and index-tracking portfolios.
The proceeds from the share sale will be used to accelerate the company’s long-term expansion plans, including the construction of new semiconductor fabrication facilities in South Korea and investments in advanced chip manufacturing equipment such as extreme ultraviolet (EUV) lithography systems. The investment is expected to strengthen SK Hynix’s production capacity as AI-related demand continues to expand across data centres, cloud computing and next-generation computing applications.
The fundraising also coincides with South Korea’s broader push to cement its position as a global semiconductor powerhouse. The government recently unveiled a sweeping industrial strategy focused on semiconductors and AI, including a massive investment programme aimed at strengthening domestic chip manufacturing.
SK Hynix and Samsung Electronics are expected to play a central role in the initiative, while President Lee Jae Myung has urged officials to expedite approvals for major semiconductor projects, warning that delays in infrastructure, land acquisition and power supply could weaken the country’s competitiveness in advanced technologies.
Despite the optimism surrounding AI, analysts caution that the memory chip industry remains cyclical. Some investors have raised concerns that a slowdown in AI infrastructure spending or increased competition from rivals such as Samsung and Micron could pressure future earnings. Nevertheless, market participants believe the structural growth in AI computing and sustained demand for HBM chips should continue to support long-term investment in leading memory manufacturers.
If completed as scheduled, the transaction is expected to rank among the largest overseas equity offerings ever by an Asian technology company, underscoring the growing strategic importance of semiconductor firms at the centre of the global AI revolution. The listing also reflects how capital markets are increasingly rewarding companies that supply the essential hardware powering the next generation of artificial intelligence.
