SK Hynix $28B U.S. Share Sale Fuels AI Expansion

The South Korean memory chipmaker priced the offering on Wednesday, marking one of the largest equity deals in the country's history. Shares were sold at 160,000 won each, a 2.4% discount to Tuesday's closing price, according to a regulatory filing.

Proceeds will be directed toward expanding production of high-bandwidth memory (HBM) chips, which are critical for AI data centers. The company plans to increase capacity at its domestic plants and invest in advanced packaging technology to meet surging demand from clients like Nvidia.

The sale also aims to diversify SK Hynix's shareholder base, reducing its reliance on domestic investors. The company said it will use part of the funds to repay debt and strengthen its balance sheet amid volatile memory prices.

Analysts view the move as a strategic hedge against potential downturns in the memory cycle. By locking in capital now, SK Hynix can maintain its lead in HBM production while rivals like Samsung Electronics and Micron Technology race to catch up.

The offering, managed by global investment banks, is expected to close by the end of the month. SK Hynix's shares have more than doubled over the past year, driven by the AI boom, and the company's market value now exceeds $150 billion.