South Korean chip giant SK Hynix raises $26.5bn in US share sale

South Korean semiconductor giant SK Hynix has achieved a landmark feat by raising $26.5 billion in its New York share offering, marking the largest listing ever by a foreign company on a US exchange. This significant capital infusion underscores the immense global demand for advanced AI chips.

The company, a critical supplier to AI chip leader Nvidia, has experienced a meteoric rise, with its market value surpassing $1 trillion in South Korea earlier this year. This surge is largely attributed to the booming demand for the memory chips essential for artificial intelligence infrastructure, such as data centers.

SK Hynix's share price has more than tripled in its home market this year, contributing significantly to the benchmark Kospi index's impressive gains. The offering, which saw demand reportedly exceed available shares sevenfold, provides US investors with a more accessible route to invest in a key player within the AI supply chain.

This move also facilitates SK Hynix's access to substantial investment capital from the world's largest economy. The company has previously announced plans to invest heavily in developing South Korea's chip-making and AI capabilities, a strategy now bolstered by this successful US share sale. The South Korean government has also committed over $880 billion in investments in partnership with SK Hynix and Samsung.