SK Hynix Targets Massive US IPO To Fuel Global AI Chip Expansion

SK Hynix is pursuing a major capital raise and expanding production amid intensifying competition in the AI chip market. U.S. IPO Plans To Fund Expansion SK Hynix plans to confidentially file for a U.S. IPO in the second half of 2026, potentially selling 2% to 3% of its shares, Reuters reported on Wednesday. A source told Reuters that the offering could raise up to $14 billion, though details remain undecided. The company intends to use the funds to build new chip factories in South Korea and Indiana to meet rising demand from AI data centers. CEO Kwak Noh-jung said the move aims to improve the company’s valuation in the U.S. market. Analysts Split On Strategy And Shareholder Impact Meritz Securities analyst Kim Sun-woo said a U.S. listing would enable clearer comparisons with Micron Technology, Inc (NASDAQ:MU), potentially highlighting SK Hynix’s valuation gap despite strong profitability and technology. However, the Korea Corporate Governance Forum warned that issuing new shares could dilute the holdings of existing investors. IBK Asset Management fund manager Kim Hyun-su also criticized the plan, suggesting the company could use existing shares and buybacks instead. Heavy Investment And Rising Competition In AI Chips SK Hynix recently agreed to buy $7.97 billion worth of EUV machines from ASML Holding NV (NASDAQ:ASML) to boost production of next-generation memory, including AI-focused HBM and advanced DRAM. Analysts said the tools will support its Yongin and Cheongju facilities, with Bernstein estimating about 30 machines over two years. At the same time, Samsung is ramping up investment and advancing new chip technologies to compete more directly with SK Hynix and Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM). The company plans to spend over $73 billion, expand production, and deepen partnerships with Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD), while working to close its gap with Taiwan Semiconductor in the foundry market. Image via Shutterstock