Nvidia supplier SK Hynix eyes U.S. listing as it expands on the AI boom
Image of the SK Hynix company logo displayed on a smartphone screen.
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South Korea’s SK Hynix confirmed on Wednesday that it is considering a U.S. listing as the memory chip maker’s valuation rises on global demand for artificial intelligence hardware.
The company at the center of the AI infrastructure boom said: in a regulatory filing While he stated that “various measures to increase corporate value are being reviewed, including a US stock exchange listing using Treasury shares,” he noted that no final decision has been made.
A U.S. listing would give American investors direct access to SK Hynix shares, which are up nearly 230% so far this year in Seoul, driven by strong AI demand.
Korea Stock Exchange he asked on tuesday SK Hynix will address an issue Korea Economic Daily The company reported that it had received offers to list approximately 2.4% of its shares as American depositary receipts (ADRs) backed by treasury shares.
ADRs are tradable certificates issued by U.S. banks that represent shares in a foreign company. While ADRs tend to trade with lower liquidity than a full U.S. listing, which may deter some investors, they preserve value for existing shareholders by using existing shares rather than new shares.
SK Hynix holds treasury shares equivalent to approximately 2.4% of its issued shares, according to the company’s data. investor relations site.
Shares of SK Hynix rose 4% on Wednesday and traded down more than 2% following its announcement, before paring gains on Thursday.
The company reinforced Nvidia’s leadership in high-bandwidth memory chips used in artificial intelligence processors.
Listing in the US could help narrow valuation gaps between the company and its US-listed rival in memory Micron Technologytogether Samsung Electronics.
SK Hynix is also allocating a significant amount of capital at home and abroad to expand its supply capacity as it tries to keep up with the increasing demand for artificial intelligence.
of the company loyalty Nearly $4 billion was spent on an advanced packaging plant in Indiana; This is in line with Washington’s goal of expanding domestic chip production.
SK Hynix is also set to benefit from the government’s increased support for the domestic semiconductor industry.
South Korea is considering building a 4.5 trillion won ($3.06 billion) foundry financed by state and private capital to feed local chipmakers amid rising demand for AI chips. Reuters report on Wednesday.
The report stated that South Korean President Lee Jae Myung met with executives from chipmakers including Samsung Electronics and SK Hynix on the same day to discuss plans to maintain the country’s leadership in memory chips and support local chip production.
