Seoul [Korea], June 24, (ANI): South Korean chip giant SK Hynix plans to raise around USD29 billion through the listing of American Depository Receipts (ADRs) on Nasdaq, Reuters reported.

The memory chip maker has seen its stock zoom more than 300 per cent this year due to exploding demand for advanced memory chips that are used in AI servers. The money could be used to expand its chip capacity as it widens its investor base.

The Korea Economic Daily reported that SK Hynix plans to issue shares in South Korea that will be deposited with Korea Securities Depository, serving as the underlying securities for the ADRs. The process to get listed in the US could be completed as soon as next month.

Shares of SK Hynix recovered on Wednesday and were up around 1 per cent after falling 12 per cent on Tuesday, along with its rival chip maker Samsung. The slump in the AI-related shares came on the back of broader concerns around the rising costs associated with the AI advancement, as companies spend hundreds of billions of dollars to ramp up the compute infrastructure.

The mammoth spending spree by hyperscalers like Amazon, Alphabet, and Microsoft has pushed the demand for high-bandwidth memory chips made by companies like SK Hynix to an all-time high, raising prices. Consumer-facing companies like Apple are likely to raise prices of their products as they face the memory chip crunch, its chief Tim Cook had told the Wall Street Journal in an interview.

Global chip design giant Nvidia is one of SK Hynix's top partners for memory chips, which are used in Nvidia's advanced AI processors like the Blackwell GPU. Both companies have entered into a multi-year partnership to advance the memory chip ecosystem.

Shares of memory chipmakers have come under pressure recently despite being on a tear this year. American chipmaker Micron's shares slumped more than 13 per cent on Tuesday, its worst fall in a year. Investors are worried about the cash-guzzling nature of the AI industry as demand for AI chips rises manifold due to the massive buildout of data centre capacity. The concerns around a prospective rise in revenue generation have made investors cautious. (ANI)