SK hynix will use funds raised through the issuance of American depositary shares (ADS) for a Nasdaq listing in the United States to expand domestic production facilities, invest in advanced packaging equipment, and introduce extreme ultraviolet (EUV) lithography equipment. The amended registration statement filed with the U.S. Securities and Exchange Commission (SEC) also included a plan to invest about 11.9 trillion won in purchasing EUV lithography equipment to be introduced by the end of 2027.
According to the semiconductor industry on the 1st, SK hynix submitted an amended Form F-1 registration statement for a Nasdaq listing to the SEC's electronic filing system on the 30th (local time). The amendment includes how the funds secured through the ADS issuance will be used, medium- to long-term domestic investment plans, and antitrust lawsuit risks.
SK hynix plans to use the proceeds for equipment introduction for next-generation processes, expansion of domestic production facilities, and investment in advanced packaging equipment. The aim is to strengthen production capacity for advanced memory, including high-bandwidth memory (HBM), to meet growing AI Semiconductor demand.
The recently released 1,100 trillion won domestic semiconductor investment plan was also reflected in the filing. However, the company said the scale and timeline of the plan could change depending on market demand, customers' investment schedules, and consultations on permits and infrastructure development with the government and local governments. It said it will prioritize using cash generated from operations for investment funding and, if necessary, consider external financing such as borrowing or a capital increase.
SK hynix added that the medium- to long-term investment plan does not affect the intended use of the funds from this ADS issuance. In other words, while proceeds from the Nasdaq listing will go toward domestic production facilities and equipment investment, the 1,100 trillion won investment plan was presented as a separate medium- to long-term management plan.
The existing public offering structure, including the size of the ADS issuance, was maintained. SK hynix plans to issue up to 17.79 million new shares in the form of ADS. This corresponds to about 2.50% of the outstanding shares. The offering size was presented at up to $29.47 billion.
However, key offering terms have not yet been finalized. Even in the amendment, the offer price, the number of ADS to be issued, and the ADS-to-common share conversion ratio were left blank. The offer price will be finalized after SK hynix and the underwriters discuss it, reflecting the most recent transaction price and market conditions.
A U.S. antitrust class action was newly added to the risk factors. On the 25th of last month, 14 U.S. consumers and three small and midsize PC manufacturers filed a lawsuit against Samsung Electronics, SK hynix, and Micron in the U.S. District Court for the Northern District of California. The plaintiffs claim that hikes in commodity DRAM prices led to higher prices for finished goods such as MacBooks and iPads, causing them monetary damage.
SK hynix also presented its HBM market position in the filing. Based on market research firm IDC, the company ranked No. 1 with a global market share of 56.4% in the HBM market in the first quarter of this year. In the overall DRAM market, including HBM, it ranked No. 2 with a 29.1% share.
The amended registration statement largely serves to explain to investors SK hynix's funding and production capacity expansion plans in response to rising AI memory demand. Although the offering terms have not yet been finalized, the company indicated it will concentrate the proceeds on domestic manufacturing infrastructure and investments in advanced processes.