SK Hynix Is Spending $8.6B on ASML’s Best Machines — Here’s Why

TLDR

• SK Hynix plans to invest approximately 11.9 trillion won to acquire EUV lithography scanners from ASML
• The EUV systems are expected to be delivered by December 2027
• SK Hynix is offering 177.9 million American Depositary Shares on Nasdaq, with trading expected to start July 10
• The IPO is targeting net proceeds of around $28 billion
• ASML stock climbed about 4% on the news, alongside a broader market recovery

SK Hynix is making a big financial move as it prepares to list on Nasdaq. The company filed regulatory documents showing it plans to spend roughly 11.9 trillion won — around $8.6 billion — on EUV lithography scanners from ASML (ASML).

ASML stock rose about 4% on Monday following the filing, helped along by a broader market bounce after last week’s selloff.

ASML Holding N.V., ASML

The deal gives SK Hynix access to some of the most advanced chip-making equipment in the world. EUV machines print circuit patterns at nanometer scale onto silicon wafers, enabling production of cutting-edge chips.

ASML is the only company in the world that commercially makes and sells EUV machines. Its main customers include Taiwan Semiconductor Manufacturing (TSM), Intel (INTC), and Samsung Electronics (SSNLF).

SK Hynix expects delivery of the EUV systems by December 2027.

The IPO Details

On Monday, SK Hynix also submitted a filing to the SEC confirming plans to offer 177.9 million American Depositary Shares. Each ADS represents one-tenth of a share of common stock, with a par value of 5,000 won per share.

The company expects trading to begin on July 10 on Nasdaq. It is targeting net proceeds of approximately $28 billion from the offering.

SK Hynix currently carries a market cap of around $29.61 billion and a P/E ratio of 22.96x.

The company generates roughly 60-70% of its revenue from DRAM and 30-35% from NAND. It holds a 33% market share in DRAM and 21% in NAND, making it the second-largest supplier of both globally.

What the Numbers Say

SK Hynix scores an 86 out of 100 on the GF Score, a composite metric covering financial strength, profitability, growth, valuation, and momentum. Its interest coverage ratio sits at 92.87, and its Altman Z-score is 20.94.

The company does carry one cautionary flag. Its Beneish M-Score of -0.94 has triggered a warning about possible manipulation of financial results. Analysts typically flag any score above -1.78 as a potential concern.

SK Hynix expanded its NAND footprint in 2021 by acquiring Intel’s NAND business.

The next-generation EUV machine from ASML, which was announced as production-ready earlier this year, costs roughly $400 million — double the price of the original EUV models.

There has been no insider buying or selling activity reported at SK Hynix over the past 12 months.

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