SK Hynix Pours $64 Billion into New Factories After Trimming Its $28 Billion Nasdaq Offering
Published on 07/07/2026 at 05:24 | Redaktion boerse-global.de
The South Korean memory chip giant is banking on an unprecedented investment cycle to defend its lead in the high-bandwidth memory (HBM) market, funding the expansion with a record share placement on Nasdaq.
SK Hynix will plough 100 trillion won ($64 billion) into its campus in Cheongju, with the bulk — 80 trillion won — earmarked for a new NAND flash fab called M17 that is slated to begin output in the first half of 2029. The remaining 20 trillion won will go toward the P&T7 advanced packaging facility, which is expected to come online by the end of 2027. Additional projects include the massive Yongin Semiconductor Cluster in South Korea, a $4 billion packaging plant in Indiana, and roughly $7.8 billion (11.9 trillion won) for next-generation EUV lithography tools from ASML, deliveries of which start in December 2027.
To help cover that tab, SK Hynix is selling 17.79 million new shares in the form of American Depositary Receipts on the Nasdaq, with trading set to begin on July 10 under the ticker SKHY. One common share equals ten ADRs, and the reference price has been set at 242,500 won per ADR. The company originally targeted $29.4 billion from the offering, but last-minute volatility on the Korean exchange forced it to dial the figure back to roughly $28 billion.
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Institutional appetite remains strong. Baillie Gifford, Coatue Management and Situational Awareness Partners — an investment firm founded by former OpenAI researchers — are reportedly prepared to take up to $7 billion of the deal between them.
The capital injection arrives at a time when SK Hynix controls roughly 57% of the global HBM market, supplying the specialised memory chips that power AI accelerators from Nvidia, Microsoft and Google. That dominance has sent its shares soaring more than 225% since the start of the year, though the stock has pulled back from its peaks. On Monday it closed at 2,343,000 won, down 3.4% on the day and roughly 21% below the all-time high set at the end of June. The 14-day relative strength index now sits at 46, indicating a neutral stance after the recent correction.
Not everyone is convinced the AI memory super-cycle has much further to run. Morgan Stanley recently warned of slowing momentum across the semiconductor sector. Yet other observers point to a supply squeeze so acute that industry watchers have taken to calling it “RAMageddon” — a term that suggests the current shortage is proof the boom is still gathering pace.
Tuesday will offer an early read on the health of the broader Korean chip ecosystem when Samsung Electronics releases preliminary second-quarter results. The consensus expects operating profit of around 86 trillion won, and those numbers will be closely watched as a sentiment gauge, not just for the sector but for the Nasdaq listing that follows two days later.
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