Key Takeaways
- SK Hynix shares gained 2.6% to reach 21 million won on Thursday, erasing an earlier 3.5% decline
- Chairman Chey Tae-won announced the memory maker will triple its wafer production capacity by 2034 to address AI chip requirements
- A potential U.S. stock exchange listing is scheduled for as early as August, with potential capital raised reaching $14 billion
- The semiconductor company holds a 57% share of worldwide high-bandwidth memory revenue and serves as Nvidia’s primary memory supplier
- Shares have surged 240% year-to-date and achieved a $1 trillion valuation milestone in May
SK Hynix shares experienced significant volatility Thursday, initially declining as much as 3.5% before recovering to finish the session up 2.6% at 21 million won. The dramatic reversal occurred following statements from SK Group Chairman Chey Tae-won to Nikkei Asia outlining plans to triple the company’s wafer manufacturing capacity by 2034.
This significant capacity increase directly addresses surging demand for high-bandwidth memory chips essential to AI server infrastructure. The South Korean memory giant is currently constructing four semiconductor manufacturing facilities in the Yongin region, with initial operations at the first plant anticipated in early 2027.
According to Chey, the project schedule was accelerated by an entire decade. The original roadmap extended through 2045.
SK Hynix’s recovery helped limit broader market declines for the KOSPI index, although the benchmark still ended trading lower. Competitor Samsung Electronics dropped more than 1% during the session.
American Stock Exchange Debut Potentially Set for August
In addition to the capacity announcement, SK Hynix is advancing toward a United States stock market presence. Following a confidential SEC filing submitted in March, regulatory approval could materialize during the week starting June 22, Reuters reports.
The public offering would utilize American Depositary Receipts as the listing structure. “SK Hynix plans to issue ADRs within 2026, but the details, including the size and timing, have not yet been decided,” the company stated officially.
The public offering could generate up to $14 billion in capital, based on information from a source cited by Reuters when the confidential filing was initially disclosed.
A United States listing would provide SK Hynix with broader access to international investors and allow the company to leverage robust appetite for AI-focused securities. Should the August listing materialize, it would coincide with a crowded IPO calendar featuring anticipated offerings from OpenAI, Anthropic, and SpaceX.
Strategic Partnership with Nvidia and Industry Dominance
SK Hynix controls 57% of worldwide high-bandwidth memory revenue based on fourth-quarter data from last year. Samsung and Micron divide the remaining market share.
The memory manufacturer serves as Nvidia’s primary memory supplier. Nvidia CEO Jensen Huang has acknowledged the company allocates billions of dollars yearly to SK Hynix. Last week, both organizations announced a multi-year strategic collaboration to develop cutting-edge memory chips for AI data center applications, encompassing Nvidia’s Vera Rubin AI supercomputers and Vera CPUs.
SK Hynix shares have appreciated 240% during the current year. In late May, the company’s market capitalization exceeded $1 trillion for the first time, establishing it as just the third Asian corporation to achieve that benchmark following TSMC and Samsung.
The stock retreated approximately 11% during the previous week amid renewed skepticism surrounding AI investments and concerns about increasing global interest rates affecting technology valuations.
Thursday’s announcement regarding the capacity expansion helped restore investor confidence in the stock.
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