SK Hynix's stock surged by as much as 11% following its announcement to issue 17.79 million new shares in the form of American depositary receipts, aiming to raise approximately 45.45 trillion won ($29.65 billion). The listing is set to begin on July 10, although the schedule may change.
The company emphasized that this move would expand its investor base and enhance its valuation, particularly as it seeks to establish a stronger presence in the U.S. market, which is pivotal for AI technology.
SK Hynix is investing heavily in AI chip production, with plans for a semiconductor cluster in South Korea and a $4 billion chip-packaging facility in Indiana, expected to start operations in 2027. Analysts are optimistic about the demand for AI memory chips, predicting ongoing supply constraints due to increased spending on AI infrastructure by major tech companies.
Daniel Newman, CEO of The Futurum Group, noted that the current capacity additions from competitors like Micron and SK Hynix are insufficient to meet this demand, suggesting that the memory market will remain tight for years. This positive sentiment extended to other technology stocks in Asia, with notable gains from Samsung Electronics, TSMC, and various Japanese chip-equipment manufacturers