SK hynix plans to invest 100 trillion won in Cheongju to expand its NAND flash memory factory.
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SK Hynix: Plans to use net proceeds from its US ADR offering for 45.5 trillion won in construction capital expenditures.
SK Hynix reportedly stated that it plans to use the net proceeds from its US ADR offering for 45.5 trillion won in constructive capital expenditures, specifically for the purchase of extreme ultraviolet (EUV) lithography machines. (Jiemian)
AI investment boom faces a crucial test: SK Hynix's US IPO may be a key indicator.
According to Odaily Odaily, South Korean memory chip giant SK Hynix plans to list on Nasdaq this Friday, becoming another major technology company to go public in the US after SpaceX. SK Hynix reportedly plans to raise approximately $28 billion through the issuance of American Depositary Receipts (ADRs). As a key supplier to Nvidia, SK Hynix primarily produces high-bandwidth memory (HBM), DRAM, and NAND flash memory products, and its business is benefiting from the increased storage demand driven by the expansion of AI infrastructure. Market analysts believe that SK Hynix's US listing will be a crucial test of investor interest in the next wave of AI technology IPOs. Over the past 12 months, its South Korean-listed shares have surged by approximately 770%, exceeding the roughly 700% increase of its competitor Micron Technology during the same period. SK Hynix's listing reflects the expanding investment boom in the AI industry chain, moving from large-scale models and computing chips to memory and the semiconductor supply chain. The market anticipates a potential surge in large AI and technology company IPOs in the second half of 2026. (Fortune)
The South Korean government is considering extending the sovereign AI core GPU guarantee project, with a budget of up to 4 trillion won next year.
According to Odaily Odaily, the South Korean government is considering extending its support project for GPUs, a core resource for AI. On July 7th, industry sources indicated that the Ministry of Science and ICT is investigating the capacity of major South Korean cloud service providers to build additional GPUs, aiming to extend the "AI Computing Resource Utilization Infrastructure Enhancement Project." The core of this project involves government-funded purchases of GPUs, deployment in cloud service provider data centers, and support for industry-academia-research collaboration. Last year, the South Korean government allocated a budget of 1 trillion won, and this year it allocated 2 trillion won, securing over 20,000 GPUs. The project was originally scheduled to end this year, but with the surge in demand for advanced resources such as NVIDIA's next-generation GPU Vera Rubin, the South Korean government is developing comprehensive countermeasures, including data center efficiency optimization and new space security plans. It is reportedly already applying to the Planning and Budget Office for a "limited additional budget" for GPU security. Industry estimates suggest that, considering this year's GPU security budget and the government's intentions, next year's budget could reach a maximum of approximately 4 trillion won. Industry experts say that compared to the GPU supply itself, "equipment installation space" will be the key to the success or failure of the project, because running thousands of high-performance GPUs simultaneously requires a large power supply and advanced cooling systems, and the equipment installation space held by South Korean companies is nearing saturation. (ETNews Electronics)
UBS raised its target price for SK Hynix to 3.2 million won and maintained its buy rating.
According to a report by Odaily, SK Hynix is continuing to push for more revised long-term agreements, focusing on DDR5 and NAND Flash for hyperscale data center customers. These contracts have terms exceeding five years, with approximately 60% to 70% of the expected volume and price already locked in, which will improve future earnings visibility. Based on a projected price-to-book ratio of 3.65 for the next 12 months, UBS has raised its target price for SK Hynix from 3 million won to 3.2 million won and maintained its buy rating. SK Hynix began ramping up HBM4 shipments for its Rubin platform in the second quarter, indicating that it has completed final design adjustments to meet specifications. While Samsung Electronics' HBM bit market share may be slightly higher than SK Hynix's in 2027 (41% vs. 39%), in the long term, HBM's share in SK Hynix's DRAM business is expected to be higher than its peers. UBS predicts that HBM's share of DRAM revenue will rise from 15% in 2026 to 58% in 2030. Further increases in the average selling price of HBM will provide additional support for profitability in 2027. UBS stated that shareholder reward policies are expected to continue to strengthen, and anticipates share buybacks to begin after the ADR listing and gradually accelerate. UBS points out that DDR and NAND Flash contract pricing still has room for further increases in the second half of 2026. Considering the revised long-term agreements and HBM, UBS forecasts a 43% quarter-on-quarter increase in DRAM average selling prices in Q2 2026, a 21% increase in Q3, and a 13% increase in Q4; for NAND, it expects a 43% quarter-on-quarter increase in the mixed average selling price in Q2, a 25% increase in Q3, and a 10% increase in Q4. Taking into account the upward revision of average selling price forecasts, UBS has raised its SK Hynix operating profit forecast by 7% to 327 trillion won this year, and by 12% each for the next two years to 623 trillion won and 667 trillion won.
SK Hynix's roadshow presentation slides revealed: The motivation for listing stems from a dual pursuit of valuation reassessment and capital expansion.
According to Odaily Odaily, SK Hynix's US IPO roadshow presentation slides have been leaked. It is reported that Baillie Gifford Overseas Limited, Coatue Management, and Situational Awareness Partners have individually (but not jointly) expressed their intention to subscribe for American Depositary Shares (ADSs) in this offering, with a total value of up to US$7 billion, at the initial public offering price. According to disclosed information, SK Hynix's IPO is driven by a dual motivation: valuation reassessment and capital expansion. It has long faced a valuation discount, currently trading at a forward 12-month price-to-earnings ratio of 6.2, lower than Micron Technology's 7. Measured by forward price-to-sales ratio, its 3.6 is also lower than Micron's 4.6. The fundamental reason for this valuation gap lies in the obstacles faced by US investors in directly investing in Korean stocks. Furthermore, the funds raised will be invested in expanding domestic production capacity in South Korea, including 45.5 trillion won in capital expenditure and 11.9 trillion won in EUV lithography machine procurement. (leinews)
Xinjinggang: Plans to invest 10 million yuan in a fund with a scale of 33.01 million yuan.
Mars Finance reported on July 6th that Xinjinggang announced it has recently signed a partnership agreement with its general partner and other limited partners to participate in the investment of Lianxin Xinghang, a company with a total fundraising scale of 33.01 million yuan. As a limited partner, Xinjinggang plans to subscribe for a 30.2939% stake with 10 million yuan of its own funds, without exercising control or joint control, and without generating significant influence. This investment does not involve competition with related parties or related-party transactions, and does not constitute a major asset restructuring. The investment aims to expand its strategic emerging industry layout and may face the risk of lower-than-expected returns or losses. (Company Announcement)