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SK hynix eyes US listing to close AI-era
valuation gap
Chip giant
eyes valuation rerating, builds W100tr war chest for AI push
By Jo He-rim,
The Korea Herald - SK hynix said Wednesday it has confidentially filed for a
potential US listing, as the South Korean chipmaker seeks to tap global
investors and close its valuation gap amid an AI-driven boom in memory demand.
At a
shareholder meeting, the company also outlined plans to strengthen its balance
sheet, targeting more than 100 trillion won ($66.7 billion) in net cash over
time to support long-term investment, as it expects structural growth in memory
demand driven by artificial intelligence and expanding computing needs.
In a
regulatory filing in Seoul, SK hynix said it had submitted a draft registration
statement on Form F-1 to the US Securities and Exchange Commission the previous
day for an American depositary share, or ADR, offering.
“The move is
part of efforts to have the company’s valuation reassessed in the US market,
the world’s largest equity market and a key listing venue for global
semiconductor firms,” CEO Kwak Noh-jung said at the shareholder meeting.
“The size and
structure of the offering have yet to be determined, but it will be pursued
with a focus on enhancing shareholder value,” he added.
The company
plans to use the ADR structure, which allows foreign firms to trade on US
exchanges through securities representing their underlying shares without a
full domestic listing.
The listing
push comes as SK hynix continues to trade at a discount to global peers despite
strong earnings momentum fueled by AI demand.
As of late
2025, the company traded at about 11 times earnings, compared with roughly 29
times for US-based Micron Technology. The valuation gap persists even as SK
hynix reported operating profit of 11.38 trillion won in the third quarter
alone — about double Micron’s over the same period.
Kim Jung-kyu,
CEO of SK Square — SK hynix’s largest shareholder with a 20.1 percent stake —
said a US listing could help narrow the valuation gap by attracting a broader
global investor base.
Kwak also
detailed plans to strengthen the company’s financial position: “Our financial
position has improved but still lags global top-tier peers, and we aim to build
more than 100 trillion won in net cash over time to fund strategic
investments.”
As of the end
of 2025, SK hynix’s net cash stood at 12.69 trillion won, according to its
annual report. The target would bring it closer to the financial capacity of
larger rivals, with Samsung Electronics estimated to hold about 92 trillion won
in net cash.
Despite the
recent share price rally, Kwak said the company has no immediate plans for a
stock split, noting that such a decision requires careful consideration of
trading volume, investor composition and market conditions.
On the product
front, Kwak reaffirmed the company’s ambition to lead in high-bandwidth memory,
a critical component for AI chips.
“Based on the
production experience and technology we have accumulated, we will strengthen
our lead in HBM4, which is expected to dominate the AI memory market this
year,” he said.
“We will
ensure timely delivery of high-performance HBM4 products and prepare customized
HBM solutions as planned.”
SK hynix added
it will accelerate its transition to the most advanced sixth-generation
10-nanometer-class DRAM process (1c) and expand its portfolio to include
LPDDR5, GDDR7, CXL and high-bandwidth flash, alongside 321-layer NAND and
enterprise solid-state drives.
