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SK hynix raises $40 trillion won to expand 'semiconductor territory,' begins re-evaluation of market value
🇰🇷 South Korea /Technology

SK hynix raises $40 trillion won to expand 'semiconductor territory,' begins re-evaluation of market value

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • SK hynix has successfully listed its American Depositary Receipts (ADRs) on the Nasdaq, raising approximately $40 trillion won (about $30 billion USD).
  • The company plans to use these funds for significant investments in advanced semiconductor facilities, including a new fab in Yongin and an advanced packaging fab in Cheongju.
  • The Nasdaq listing is expected to increase global investor accessibility and potentially lead to a re-evaluation of SK hynix's market value compared to competitors.

SK hynix has officially entered the U.S. stock market by listing its American Depositary Receipts (ADRs) on the Nasdaq, raising approximately $40 trillion won (about $30 billion USD). The company celebrated this milestone with an "Opening Bell" ceremony at the Nasdaq MarketSite in New York, attended by key executives including SK Group Chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung.

We thank the investors and customers who believed in us, and we will broaden the boundaries of memory possibilities through innovation and support our employees who have worked together to achieve greater success. SK hynix will prove its technological leadership and be present wherever AI exists.

— Kwak Noh-jungSK hynix CEO Kwak Noh-jung emphasized the company's commitment to trust, innovation, and growth during the ADR listing ceremony.

The substantial capital raised through the ADR issuance is earmarked for significant investments in advanced semiconductor manufacturing facilities. These include the construction of the first phase of a semiconductor cluster fab in Yongin and an advanced packaging fab (P&T7) in Cheongju. The funds will also support the acquisition of cutting-edge production equipment, such as extreme ultraviolet (EUV) scanners.

This listing marks the second-largest IPO in U.S. history, following SpaceX's $75 billion offering, and represents the largest offering by a foreign company since Alibaba's $25 billion IPO in 2014. SK hynix plans to double its overall production capacity within the next five years, with a total capital expenditure of 61.9 trillion won planned for major projects.

In the next five years, we will double the overall production capacity.

— Chey Tae-wonSK Group Chairman Chey Tae-won stated the company's intention to significantly expand production capacity.

Industry analysts anticipate that the Nasdaq listing will broaden access for global investors, potentially leading to a re-evaluation of SK hynix's stock. This is seen as an opportunity to boost the company's valuation, which has been considered undervalued compared to global competitors like Micron. KB Securities' head of research, Kim Dong-won, expressed optimism that the ADR listing will lead to a simultaneous re-evaluation of both U.S. ADRs and Korean shares.

Through the ADR listing, global investor accessibility will expand, and we expect both U.S. ADRs and Korean shares to be re-evaluated.

— Kim Dong-wonKim Dong-won, head of research at KB Securities, commented on the expected impact of the Nasdaq listing on SK hynix's valuation.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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