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

SK hynix, a prominent South Korean memory chip manufacturer already listed on the KOSPI, is preparing for a potential U.S. initial public offering (IPO) that could generate between $10 billion and $14 billion.

This week, the company confirmed it has submitted a confidential Form F-1 for the listing, which is anticipated to take place in the latter half of 2026.

The pivotal question extends beyond the amount to be raised; it concerns whether a U.S. listing could enhance its valuation as a key player in the AI chip supply supply chain.

Notably, despite being integral to high-bandwidth memory (HBM)—a crucial element driving AI systems produced by companies such as Nvidia—the stock has historically traded at a lower valuation when compared to its global counterparts, as noted by a semiconductor analyst based in Seoul. Although SK hynix possesses a market capitalization of approximately $440 billion, its valuation multiples still trail those of U.S.-listed semiconductor companies, prompting speculation that geographical factors, rather than fundamentals, may be contributing to this disparity.

This strategic move is widely perceived as an initiative to elevate its market valuation to be on par with global competitors like Micron.

“A U.S. listing for SK hynix has the potential to bridge a longstanding valuation divide with global counterparts. Although its production capacity is equivalent to, or in some cases superior to, U.S.-based chipmakers, the Korean firm has traditionally traded at a discount, partly due to its primary listing in Korea,” the analyst remarked to TechCrunch.

Furthermore, the analyst highlighted structural elements influencing the IPO. “SK Square, the largest shareholder of SK hynix, owned 20.07% as of December 2025, and is obligated to retain a stake of at least 20% in compliance with South Korea’s holding company regulations.”

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According to the analyst, by issuing approximately 2% in new shares based on current share prices, SK hynix could secure the projected $10 billion to $14 billion while allowing SK Square to preserve its ownership status.

There is precedent for this approach; for instance, Taiwan Semiconductor Manufacturing Company (TSMC) has experienced its U.S.-listed shares trading at a premium compared to its domestic shares at times, particularly during heightened AI-driven demand periods. This suggests that cross-listing can affect investor perceptions of the value of the same underlying business.

The ramifications of this move are already being felt throughout the broader Korean semiconductor industry. In light of SK hynix’s filing, certain investors are now advocating for Samsung Electronics to explore a similar U.S. listing. Artisan Partners, a notable shareholder, stated on Friday that a U.S. listing (formally known as an American depositary receipt, or ADR) could assist Samsung in enhancing its valuation, granting U.S. retail investors access to its shares, as reported by Bloomberg.

A capital push to meet AI-driven demand

SK hynix’s proposed ADR listing is also predominantly viewed as a strategy to secure financing in anticipation of increased capital expenditures aimed at satisfying the growing demand for AI technologies.