The AI chip boom has produced its biggest Wall Street moment yet. SK Hynix, the South Korean memory chip giant, announced Friday it has raised $26.5 billion (KRW 40 trillion) in its U.S. market debut. The offering surpassed Alibaba's $25 billion IPO in 2014, becoming the largest-ever U.S. debut by a non-American company.
Offer details and market reaction
SK Hynix sold 177.9 million American Depositary Receipts (ADRs) at $149 each, structured so U.S. investors can buy in at roughly a tenth of what a full share costs in Seoul. The stock began trading on the Nasdaq Friday under the temporary ticker SKHYV, opening 14% above its IPO price. Regular trading starts Monday, July 13, under the ticker SKHY. Demand for the offering was reportedly more than seven times the available shares, reflecting overwhelming investor enthusiasm.
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Success despite the Korea Discount
Korean companies have long traded at a discount, known as the Korea Discount, due to complex governance, low shareholder returns, and geopolitical risks. SK Hynix overcame this thanks to its critical role in producing High Bandwidth Memory (HBM), a key component for Nvidia's AI GPUs. The AI chip demand has made SK Hynix a strategic supplier, driving investor confidence.
Use of proceeds: new fabs and technology
According to its filing, the raised funds will go to three areas: a new fab in South Korea to address the global memory shortage, a new packaging facility, and EUV scanners for next-generation chip production. These investments underscore SK Hynix's ambition to lead in high-performance memory.
US government pressure for domestic fabs
U.S. Commerce Secretary Howard Lutnick said Thursday he is already in talks with Samsung and SK Hynix about building new factories in the United States. The goal is to reduce dependence on South Korea for critical chip production. Lutnick spoke at a Micron event, where the competitor announced a $250 billion investment in new U.S. plants, creating over 90,000 jobs. The timing is notable: both Korean chipmakers had just pledged over $550 billion in new investment in South Korea.
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For related coverage, read about Apple slashing iPhone 17 demand forecast and Mac shipments growing double-digit in Q2 2026. For broader context, see the Wikipedia page on SK Hynix.
