SK Hynix, the South Korean memory chip giant, raised $26.5 billion in its U.S. stock market debut on Friday. The IPO is the largest ever by a non-American company, surpassing Alibaba's $25 billion offering in 2014.
The company sold 177.9 million American depositary shares at $149 each. The structure allows U.S. investors to buy in at roughly one-tenth the price of a full share traded in Seoul. Trading began on the Nasdaq under the temporary ticker SKHYV, with regular trading under the permanent ticker SKHY starting Monday, July 13.
Demand was strong. Shares opened 14% above the IPO price and continued to climb in early trading. The offering was priced at a 2.7% premium to SK Hynix's three-day average on the Korea Stock Exchange, yet demand reportedly exceeded available shares by more than seven times.
SK Hynix has defied that trend. The company makes high-bandwidth memory chips, a key component in AI graphics processing units. Nvidia relies on SK Hynix as one of its primary HBM suppliers, giving the Korean firm a central role in the AI boom.
Use of Proceeds and US Expansion Pressure
According to its regulatory filing, the money raised will go to three areas: a new fabrication plant in South Korea currently under construction to address a worldwide memory shortage driven by AI demand; a new packaging facility in the same country; and EUV scanners, the machines needed to produce next-generation chips.
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While SK Hynix focuses on building in South Korea, U.S. Commerce Secretary Howard Lutnick sent a signal to the broader chip industry. Speaking at a Micron event on Thursday, Lutnick said he is already in talks with Samsung and SK Hynix about building new factories in the United States. The goal is to reduce South Korea's dominance in memory chip manufacturing.
Micron, a direct competitor to SK Hynix, responded with a commitment. The U.S. memory maker announced plans to invest $250 billion in new American manufacturing, a move it says will create more than 90,000 jobs and keep leading-edge chip production on U.S. soil.
Lutnick's request comes at a notable time. Both Korean chipmakers recently pledged more than $550 billion for new manufacturing investment in South Korea, reinforcing their home country's position as a chip production hub.
Record-Breaking Debut Amid Geopolitical Context
SK Hynix's IPO marks a major milestone for the AI chip industry. The company's ability to command a premium price in the U.S. market reflects investor appetite for AI-related semiconductor stocks. The strong debut also highlights how the global race for chip manufacturing capacity is intertwining with national security and industrial policy.
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