Memory chip giant SK hynix could help end ‘RAMmageddon’ with blockbuster US IPO

SK hynixa South Korean memory chip giant already listed on KOSPI is laying the groundwork for a potential U.S. listing that could reportedly raise an estimated $10 billion to $14 billion.

The company announced this week that it has confidentially filed a Form F-1 with the listing, targeting the second half of 2026.

But the real question isn’t just how much it can make: It’s whether a U.S. listing could boost its trade value as one of the most crucial players in the AI ​​chip supply chain.

Despite its crucial role in high-bandwidth memory (HBM), a key component that powers AI systems from companies like Nvidia, the stock has historically traded at a discount to global peers, according to a Seoul-based semiconductor analyst. It has a market capitalization of about $440 billion, but its valuation ratios remain below those of U.S. publicly traded semiconductor companies, raising questions about whether geography, rather than fundamentals, is partially driving the gap.

The move is widely seen as an attempt to boost its valuation to match global peers like Micron.

“SK hynix’s US listing could help close a long-standing valuation gap with global peers. Despite having comparable – or in some areas stronger – manufacturing capacity than US-based chipmakers, the Korean company has historically traded at a discount, in part due to its primary listing in Korea,” the analyst told TechCrunch.

The analyst also cited structural factors that shaped the deal. “SK Square, the largest shareholder of SK hynix, which owned 20.07% as of December 2025, must maintain a stake of at least 20% under Korean holding company rules.”

Based on current stock prices, issuing about 2% of new shares could raise $10 billion to $14 billion while allowing SK Square to maintain its ownership threshold, the analyst said. (Under Korea’s Fair Trade Act, holding companies must maintain a minimum ownership stake in subsidiaries, at least 20% for listed entities, to maintain control.)

There is a precedent. For example, Taiwan Semiconductor Manufacturing Company (TSMC) has seen its US-listed shares sometimes trade at a premium to its domestic stocks, especially during periods of strong AI-driven demand, suggesting that cross-listing could impact how investors value the same underlying businesses.

This move is already visible in the broader Korean chip sector. Following SK hynix’s filing, some investors are now urging Samsung Electronics to consider a similar US listing. Artisan Partners, a major shareholder, said on Friday that a US listing (technically known as an American Depositary Receipt or ADR) could also help Samsung boost its valuation, and give US retail investors a chance to buy its shares, according to a Bloomberg report.

A capital boost to meet AI-driven demand

SK hynix’s planned ADR listing is also widely seen as a move to secure financing ahead of higher capital expenditures to meet rising demand for AI semiconductor memory.

At its annual general meeting on March 25, SK Hynix CEO Noh-Jung Kwak said financial capacity will be critical to supporting growth in the AI ​​era. He added that the company is targeting approximately $75 billion (over KRW 100 trillion) in net cash to support long-term investments.

Rising memory costs and limited supply have been one of the bottlenecks that have slowed AI builds but also affected other sectors such as consumer gamers. It’s a situation that has been dubbed “RAMmageddon” and if nothing changes in the market, this is expected to continue until at least 2027, Nature reports.

Time will tell if this doomsday prediction holds up. The tech giants are working to solve RAMmageddon in ways other than just increased production. For example, Google this week introduced a technology called TurboQuant, an ultra-efficient AI memory compression algorithm. It allows AI to become much more efficient in using memory.

Nevertheless, the signals indicate that more memory production will also be needed. SK hynix is ​​preparing for a wave of capital-intensive projects. The company plans to invest approximately $400 billion to build a semiconductor cluster in Yongin, South Korea by 2050. The country is also building new facilities in South Korea and Indiana, with planned investments of approximately $25 billion and $3.3 billion respectively, underscoring the scale of the capital required.

The chipmaker said this week it will acquire advanced extreme ultraviolet (EUV) lithography scanners from ASML by 2027 in a deal worth $7.9 billion aimed at boosting the production of high-bandwidth memory (HBM) for AI.

All this would be backed by a successful US IPO. And that could lead to other Korean chip makers following suit.