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

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

The company announced this week that it has secretly filed an F-1 model with the listing, targeting the second half of 2026.

But the real question isn’t just how much it can raise: it’s whether the value of a US listing as one of the most important players in the AI ​​chip supply chain can be increased.

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

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

“SK hynix’s U.S. listing could help close a long-standing valuation gap with its global peers. Despite having similar — or in some regions stronger — production capacity than U.S.-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 mentioned the structural factors shaping the deal. “SK Square, the largest shareholder in SK hynix, which owned 20.07% as of December 2025, is required to maintain a stake of at least 20% under Korea’s holding company rules.”

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

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

The move has already spread across the broader Korean chip sector. In the wake of SK hynix’s filing, some investors are now pressuring Samsung Electronics to consider a similar listing in the US. Artisan Partners, a major shareholder, said on Friday that a US listing (technically known as an American Depositary Receipt, or ADR), could help Samsung boost its valuation as well, as well as give US retail investors a chance to buy its shares, according to a Bloomberg report.

A capital push to meet AI-driven demand

SK hynix’s planned ADR listing is also widely seen as a move to secure financing before ramping up capital spending to meet growing demand for memory from AI-powered semiconductors.

At its annual general meeting on March 25, SK hynix CEO Noh-jung Kwax said financial capacity will be key to sustaining growth in the era of artificial intelligence, adding that the company is targeting approximately $75 billion (more than KRW 100 trillion) of net cash to support long-term investments.

The high cost of memory and limited supply has been one of the barriers that has slowed the construction of AI, but it has also affected other industries, such as consumer players. This situation has been dubbed “RAMmageddon,” and if nothing changes in the market, it is expected to continue until at least 2027, Nature reports.

Time will tell whether the doomsday prediction holds up. Tech giants are working to solve the RAMmageddon problem in other ways beyond increased manufacturing. For example, this week Google introduced a technology called TurboQuant, an ultra-efficient AI memory compression algorithm. It allows AI to become vastly more efficient in using memory.

However, indications are that it will also be necessary to produce more memory. SK hynix is ​​preparing for a wave of capital-intensive projects. The company plans to invest about $400 billion by 2050 to build a semiconductor cluster in Yongin, South Korea. It is also building new facilities in South Korea and Indiana with planned investments of approximately $25 billion and $3.3 billion, respectively, confirming the amount of capital required.

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

All of this will be supported by an initial public offering in the United States. This could prompt other Korean chipmakers to follow suit.