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

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

The company announced this week that it has privately filed a Form F-1, targeting the second quarter of 2026.

But the real question is not just how much it can raise: whether the listing of the US can increase by trading value as one of the most important players in the AI ​​chip supply chain.

Despite its key role in high-bandwidth memory (HBM), a key component powering 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 cap of about $440 billion, but multiples of its value remain below those of US-listed semiconductor companies, raising questions about whether geography, rather than fundamentals, is driving the gap.

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

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

The analyst also listed the structural factors that make up the agreement. “SK Square, the largest shareholder of SK hynix, which held 20.07% as of December 2025, is required to maintain a 20% stake under Korean holding company regulations.”

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

There is an example. Taiwan Semiconductor Manufacturing Company (TSMC), for example, has seen its US-listed shares trade at a premium to its domestic shares at times, particularly during periods of strong AI-driven demand, suggesting that reverse listings may affect how investors value the same underlying business.

The move is already shaking up the broader Korean chip sector. Following SK hynix’s listing, some investors are now pressuring Samsung Electronics to consider a similar US listing. Artisan Partners, the largest shareholder, said on Friday that an American listing (technically known as an American depositary receipt, or ADR), could help Samsung increase its valuation, too, and give American retail investors a chance to buy its stock, 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 funding ahead of capital spending to meet growing demand for memory in AI semiconductors.

At its annual general meeting on March 25, SK hynix CEO Noh-Jung Kwaksaid it will be key to sustaining growth in the AI ​​era, adding that the company is looking at about $75 billion (over 100 billion KRW) in surplus to fund long-term investments.

The rising cost of memory, and limited supply has been one of the issues holding back AI development, but it has also impacted other industries, such as consumer gamers. The situation is called ‘RAMmageddon’ and, if nothing changes in the market, it is expected to continue until at least 2027, reports Nature.

Time will tell if that doomsday prediction will hold. Tech giants are working on solving RAMmageddon in ways other than increased productivity. For example, Google this week introduced a technology called TurboQuant, a highly efficient AI memory compression algorithm. It allows AI to be more efficient in memory usage.

However, the signals indicate that the production of additional memory will also be required. SK hynix is ​​gearing up for a wave of capital-intensive projects. The company plans to invest approximately $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 about $25 billion and $3.3 billion, respectively, underscoring the magnitude of the capital needed.

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

All this will be backed by a blockbuster US IPO. And that could lead other Korean chip makers to follow suit.