SK Hynix raises record 26.5 billion in US IPO as government pushes for domestic chip manufacturing

1. Record-Breaking IPO

South Korean memory chip manufacturer SK Hynix has raised $26.5 billion in its U.S. market debut, marking the largest foreign initial public offering in U.S. history. The company sold 177.9 million American depositary shares at $149 each, surpassing the $25 billion IPO record set by Alibaba in 2014. Trading began on the Nasdaq on July 10, 2026, under the ticker SKHYV, with plans to transition to the ticker SKHY on July 13. Despite concerns regarding the "Korea Discount," the offering was reportedly oversubscribed by more than seven times, reflecting strong investor interest in the company's role as a primary supplier of high-bandwidth memory (HBM) for Nvidia’s AI processors.

2. Strategic Investment Plans

SK Hynix intends to use the capital raised from the IPO to fund three primary initiatives: the construction of a new fabrication plant in South Korea, the development of a new packaging facility, and the acquisition of EUV scanners. These investments are designed to address the global memory chip shortage driven by the ongoing AI boom. The company’s expansion efforts coincide with a broader commitment by South Korean tech giants to invest over $550 billion in domestic manufacturing to bolster their production capabilities.

3. Pressure for U.S. Manufacturing

U.S. Commerce Secretary Howard Lutnick has urged both SK Hynix and Samsung to establish new memory chip factories within the United States. The push aims to reduce reliance on South Korean production for critical semiconductor components. This request aligns with the U.S. government's broader strategy to secure domestic supply chains, a goal supported by companies like Micron, which has announced a $250 billion investment plan for U.S. manufacturing. While the Korean firms are currently focused on domestic expansion, the U.S. government continues to advocate for increased local output to ensure long-term technological security.