SK Hynix raises $26.5B in the biggest foreign IPO in US history, is urged to build new US fabs
The AI chip boom just produced its biggest Wall Street moment yet. Now SK Hynix and Samsung are being asked to build U.S. factories.
The AI chip boom just produced its biggest Wall Street moment yet. SK Hynix, a South Korean memory chip giant, said Friday it has raised $26.5 billion (KRW 40 trillion) in its U.S. market debut.
SK Hynix sold 177.9 million American depositary shares (ADRs) at $149 each, structured so U.S. investors can buy in at roughly a tenth of what a full share costs in Seoul. This deal, the largest-ever U.S. debut by a non-American company, topped Alibaba’s $25 billion IPO in 2014.
The company begins trading on the Nasdaq today, Friday, July 10, under the temporary ticker SKHYV. Regular trading opens Monday, July 13, when the ticker officially becomes SKHY. So far, U.S. investors are lapping it up. The stock opened at 14% over its IPO price , and the price was still rising in early trading on Friday.
This even as it priced its U.S. shares at a 2.7% premium to its own three-day average back home in Seoul, according to its Korea Stock Exchange filing . Yet, demand for the offering was reportedly more than seven times the available shares, per media reports.
That’s especially amazing considering Korean companies have long traded at a discount to their global peers. That valuation gap is called the Korea Discount. Investors often cite factors such as complex corporate governance structures, low shareholder returns, regulatory uncertainty, and geopolitical risks related to North Korea to justify why companies from that country don’t command higher share prices.
But SK Hynix clearly isn’t suffering from the Korea Discount and that’s because it makes memory chips, including high-bandwidth memory (HBM). HBM is a key component of AI GPUs processors. And right now, Nvidia relies on SK Hynix as one of its primary suppliers.
Per its filing, the money raised from eager U.S. investors will go to three places: a new fab in South Korea (being built now to address the worldwide shortage of memory cause by AI); a new packaging facility in that country; and EUV scanners, the machines that make next-generation chips possible.
Meanwhile, U.S. Commerce Secretary Howard Lutnick stopped by a Micron event Thursday with a message for the broader chip industry, not just for U.S. memory maker Micron (who is one of SK Hynix’s biggest competitors). Lutnick reportedly said he’s already in talks with Samsung (the third major memory maker, worldwide) and SK Hynix about building new factories in the U.S. The idea being not to let South Korea continue to be the country that dominates this important tech.
Micron, naturally, is in. It announced it plans to invest $250 billion in new U.S. manufacturing, a commitment the U.S. memory chip company says will create more than 90,000 jobs and keep leading-edge chip production on American soil.
The timing of Lutnick’s request is notable beyond this U.S. IPO for SK Hynix: Both Korean chipmakers just pledged more than $550 billion for new manufacturing investment in South Korea.
When you purchase through links in our articles, we may earn a small commission . This doesn’t affect our editorial independence.
Kate Park is a reporter at TechCrunch, with a focus on technology, startups and venture capital in Asia. She previously was a financial journalist at Mergermarket covering M&A, private equity and venture capital.
Last chance to save up to $190 on TechCrunch Founder Summit. Join 1,000+ founders and VCs at all stages for real-world scaling insights and connections that move the needle. Savings end June 26, 11:59 p.m. PT .
Instagram users: Here’s how to stop Meta’s AI from using your photos Lauren Forristal
Instagram users: Here’s how to stop Meta’s AI from using your photos
Instagram users: Here’s how to stop Meta’s AI from using your photos
Figma acquires team behind a vibe-coding app Ivan Mehta
Figma acquires team behind a vibe-coding app
Figma acquires team behind a vibe-coding app
If you use Google, you’re training its AI. Here’s how to opt out. Sarah Perez
If you use Google, you’re training its AI. Here’s how to opt out.
If you use Google, you’re training its AI. Here’s how to opt out.
Reddit is using LLMs to solve a problem LLMs largely created Amanda Silberling
Reddit is using LLMs to solve a problem LLMs largely created
Reddit is using LLMs to solve a problem LLMs largely created
Amazon will stop accepting new customers for Mechanical Turk Anthony Ha
Amazon will stop accepting new customers for Mechanical Turk
Amazon will stop accepting new customers for Mechanical Turk
5 desk gadgets that can make your workday better Aisha Malik
5 desk gadgets that can make your workday better
5 desk gadgets that can make your workday better
Almost 90 new unicorns have been minted so far this year — here they are Dominic-Madori Davis
Almost 90 new unicorns have been minted so far this year — here they are
Almost 90 new unicorns have been minted so far this year — here they are
Key takeaways
- SK Hynix raised $26.5 billion, highlighting the growing demand for memory chips driven by AI.
- The pressure to build factories in the U.S. may influence the dynamics of the global semiconductor market, impacting Brazil.
- The success of SK Hynix may indicate a shift in the perception of the 'Korea Discount,' which could benefit South Korean firms.
Editorial analysis
The $26.5 billion raised by SK Hynix marks a significant moment not only for the company but also for the global technology market, especially in the context of the growing demand for memory chips driven by artificial intelligence. For the Brazilian tech sector, this move can serve as an indicator of the need for investments in infrastructure and the development of local capabilities. Brazil, which still faces challenges in semiconductor production, may benefit from observing how SK Hynix and other companies are positioning themselves to meet the increasing demand for AI-related products.
Moreover, the pressure on SK Hynix and Samsung to build factories in the U.S. highlights a trend of production reshoring, which could impact the dynamics of the global chip market. Brazil, which has been seeking to attract foreign investments in technology, should consider how it can position itself as an alternative hub for semiconductor manufacturing, especially in a scenario where supply chain security becomes a priority.
The success of SK Hynix also raises questions about the perception of the 'Korea Discount,' which has historically affected the valuation of South Korean companies. Overcoming this discount may signal that the market is beginning to recognize the strategic value of South Korean tech firms, particularly those at the forefront of AI innovation. For Brazil, this could be a call for local companies to seek partnerships and collaborations with tech giants to enhance their own competitiveness in the global landscape.
Finally, the involvement of the U.S. Secretary of Commerce with the chip industry suggests that the competition for semiconductor factory investments is intensifying. Brazil should keep an eye on these movements, as attracting investments in technology could be an important driver for economic growth and innovation in the country. What we are witnessing is that the race for memory chips and the infrastructure needed to support AI is just beginning, and Brazil needs to be prepared to proactively participate in this race.
What this coverage includes
- Clear source attribution and link to the original publication.
- Editorial framing about relevance, impact, and likely next developments.
- Review for readability, context, and duplication before publication.
Original source:
TechCrunch AIAbout this article
This article was curated and published by AIDaily as part of our editorial coverage of artificial intelligence developments. The content is based on the original source cited below, enriched with editorial context and analysis. Automated tools may assist with translation and initial structuring, but publication decisions, factual review, and contextual framing remain editorial responsibilities.
Learn more about our editorial process