SK Hynix Starts Nasdaq ADR Trading, Targeting Up to $26.8 Billion

SK Hynix Inc. will begin trading its American depositary receipts on the Nasdaq on July 10, opening the way for the chipmaker to raise as much as 37 trillion won ($26.8 billion) to expand semiconductor production capacity.

According to industry officials, the ADRs are set to start trading later on July 10. SK Hynix plans to issue as many as 17.79 million new shares, equal to about 2.5% of outstanding stock, for the listing. The offering is expected to raise about 37 trillion won ($26.8 billion). Settlement is scheduled for July 14.

The proceeds will go toward capacity expansion and advanced packaging investment. In a filing, SK Hynix said it plans to use the funds for construction and facility spending, including the first fab at the Yongin semiconductor cluster, the Cheongju P&T7 advanced packaging fab, and related machinery and equipment. The company also plans to invest in extreme ultraviolet lithography tools. It intends to spend 11.9 trillion won ($8.6 billion) on EUV equipment to be introduced by the end of 2027.

The global memory-chip market is projected to keep growing despite concerns that the cycle may be nearing a peak. Counterpoint Research said the average operating margin for the world’s three memory makers will reach 75% to 80% in the second quarter of 2026. The research firm also said the supply-driven upcycle could continue at least through 2027.

Competitors are expanding as well. Micron recently began building a next-generation high-bandwidth memory production line in Hiroshima, Japan, with an investment of 14 trillion won ($10.1 billion). In South Korea, efforts to broaden chip manufacturing bases are continuing, including moves to build a semiconductor cluster in the Honam region.

The Nasdaq listing may also become a catalyst for a re-rating of SK Hynix’s valuation, according to market participants. The company holds the top position in the global high-bandwidth memory market and maintains a lead over Micron in DRAM.

Still, SK Hynix trades at a price-to-earnings ratio that is 20% to 40% lower than Micron’s. The company expects the Nasdaq listing to improve access for global investors and help close that valuation gap.

SK Group Chairman Chey Tae-won said earlier this year that the ADR listing would help make the company more global by increasing its exposure to US and other international investors, in addition to Korean shareholders.

Market participants also expect the listing could attract inflows from global asset managers, pension funds and passive investors. SK Hynix says the benefits of broader investor access and potential fund inflows should outweigh shareholder dilution, given that the new shares amount to about 2.5% of total shares outstanding. The company plans to continue communicating with the market and prepare a detailed shareholder return plan within 2026.

Lee Song-ryeol, Hankyung.com reporter yisr0203@hankyung.com