Nvidia supplier SK Hynix eyes U.S. listing as it expands on the AI boom

South Korea's SK Hynix connected Wednesday confirmed that it is weighing a U.S. listing arsenic the representation chipmaker's valuation soars connected planetary request for artificial quality hardware.

The institution astatine the halfway of the AI infrastructure roar said in a regulatory filing that it was "reviewing assorted measures to heighten firm value, including a U.S. banal marketplace listing utilizing treasury shares," portion noting that nary last determination has been made.

A U.S. listing would springiness American investors nonstop entree to SK Hynix shares, which person surged astir 230% truthful acold this twelvemonth successful trading successful Seoul connected the backmost of beardown AI demand. 

The Korea Exchange on Tuesday asked SK Hynix to code a Korea Economic Daily study that the institution had received proposals to database astir 2.4% of its shares arsenic American depositary receipts (ADRs) backed by treasury stock.

ADRs are tradable certificates issued by U.S. banks that correspond shares successful a overseas company. While they thin to commercialized with little liquidity than a afloat U.S. listing, which tin deter immoderate investors, ADRs usage existing shares alternatively than caller stock, preserving worth for existing shareholders.

SK Hynix holds treasury shares equivalent to astir 2.4% of its issued stock, according to the company's investor relations website.

Shares of SK Hynix roseate 4% connected Wednesday pursuing its statement, earlier paring gains connected Thursday, trading implicit 2% lower.

The institution has cemented its pb successful high-bandwidth representation chips, which are utilized successful Nvidia's AI processors. 

A U.S. listing could assistance constrictive valuation gaps betwixt the institution and U.S.-listed representation rival Micron Technology, arsenic good arsenic Samsung Electronics. 

SK Hynix has besides been committing important superior astatine location and overseas to grow its proviso capacity, arsenic it races to support up with increasing AI demand. 

The steadfast has committed astir $4 cardinal to an precocious packaging fab successful Indiana, aligning with Washington's purpose to grow home spot production. 

SK Hynix is besides acceptable to payment from the government's increasing enactment of the section semiconductor industry. 

South Korea is considering gathering a 4.5 trillion won ($3.06 billion) foundry, funded by authorities and backstage superior to nurture section chipmakers amid increasing request for AI chips, according to a Reuters report connected Wednesday. 

The study added that South Korean President Lee Jae Myung met with executives from chipmakers, including Samsung Electronics and SK Hynix, connected the aforesaid time to sermon plans to support the country's pb successful representation chips and enactment its section spot manufacturing.