SK Hynix launches 28 billion-dollar ADR sale in U.S. as demand for AI chips rises

South Korean chipmaker SK Hynix has launched a large-scale American Depositary Receipt (ADR) sale in U.S. markets at a time when global demand for artificial intelligence technologies is rising rapidly. The company is reported to be planning to sell 17.79 million ADRs on Nasdaq.

ADRs are financial instruments that allow shares of companies outside the United States to trade on U.S. exchanges in dollars. SK Hynix is expected to raise 28 billion dollars from the sale. If the plan is realized, the transaction will go down in history as the second-largest public offering after SpaceX.

The company aims to use the proceeds to expand its chip production facilities in South Korea and purchase advanced manufacturing equipment such as extreme ultraviolet (EUV) lithography systems. These investment items are seen as critical for production capacity for advanced memory chips used particularly in artificial intelligence applications.

SK Hynix has recently stood out with its high-bandwidth memory (HBM) chips. These chips, used in the artificial intelligence systems of technology companies such as Nvidia and Google, have played an important role in the increase in the company’s revenue and market value.

Analysts say the U.S. listing could broaden SK Hynix’s global investor base and help the company narrow the valuation gap with its U.S. rival Micron.

The move came after South Korea announced a 576 billion-dollar investment program in semiconductors and artificial intelligence. According to experts, the development shows that the global leadership race over chip technologies in the age of artificial intelligence has accelerated further.

Elon Musk’s space transportation company SpaceX is cited as having the largest public offering in history, with 75 billion dollars in IPO proceeds.

News Source: 12punto