SK Hynix ADS Jumps 2.27% as Company Breaks Ground on First US Plant in Indiana

Aug 27: SK Hynix Inc.’s (SKHY) American Depositary Shares closed higher on Thursday at $161.61, up $3.59, or 2.27 per cent, as of 4 pm ET, after the company held a groundbreaking ceremony for its first high-bandwidth memory (HBM) production base in the United States. The stock, listed on the Nasdaq, saw volume of 13,394,012 shares on the session as the news out of Indiana lifted sentiment through the day. SK hynix’s ADS has traded within a 52-week range of $124.80 to $194.80. 

How The Stock Moved 

SK Hynix’s ADS held around the $163 to $164 level through pre-market trade between 4 am and 9.30 am ET, based on the stock’s intraday chart, before giving up those gains at the opening bell, when the stock gapped down to around $159 to $160 on a sharp jump in volume. The stock then traded in a choppy range through the middle of the session, slipping as low as roughly $158.50 in early afternoon trade, before turning higher into the close. A fresh burst of volume in the final half hour of trade pushed the stock back up to end the regular session at $161.61, up 2.27 per cent on the day, with the gain holding through after-hours trading into the evening. 

SK Hynix Breaks Ground on Indiana HBM Plant 

SK Hynix said it held a groundbreaking ceremony on the 27th, local time, for an advanced packaging production facility for AI memory at Purdue University’s Holloway Gymnasium in West Lafayette, Indiana, describing the project as opening a new future for AI cooperation between the United States and South Korea. The ceremony was attended by Indiana Governor Mike Braun, US Senator Todd Young, Purdue University President Mitch Daniels, Korea-US Alliance Foundation Chairman Robert Abrams and South Korea’s Ambassador to the United States, Kang Kyung-wha, along with SK Group Vice Chairmen Yu Jeong-Joon and Lee Hyung-hee and SK Hynix Chief Executive Kwak Noh-Jung. 

The Indiana facility, which represents a total expected investment of more than $4 billion, is scheduled to open its cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029, with roughly 1,000 personnel expected during commercial operations. The plant marks SK hynix’s first HBM production base in the United States and will operate in close integration with the company’s manufacturing in South Korea, with wafers produced in Korea shipped to Indiana for advanced packaging and testing before Made in USA products are supplied to customers. An Advanced Packaging R&D Testbed will also be built alongside the production lines for customers, universities and business partners to jointly develop next-generation packaging technology. 

Also Read: How to Invest in the US Stocks From India

Why It Matters: US-Korea AI Memory Supply Chain 

HBM chips sit at the centre of the AI computing build-out, feeding the memory-hungry accelerators that power large AI models, and demand for the technology has surged alongside broader AI infrastructure spending. By establishing its first US-based HBM production base, SK Hynix is positioning itself closer to its American customers even as competition to expand AI infrastructure intensifies. The company said the Indiana plant is expected to help stabilise the US semiconductor supply chain while contributing to the country’s economy and security in the AI era, an outcome that also strengthens SK hynix’s standing in the broader race among memory makers to serve AI chipmakers. 

Outlook 

With the ADS holding its gains into the close, investors will watch execution on the Indiana build-out over the next three years, including progress toward the October 2028 cleanroom target and the 2029 start of mass production, as SK Hynix works to translate the groundbreaking ceremony into an operating US HBM base. 

Investors who are interested in US stocks can check here: https://hdfcsky.com/global-investing 

Source

• https://www.nasdaq.com/market-activity/stocks/skhy