South Korean chip maker SK Hynix wants to raise about $1 billion in capital by issuing bonds in U.S. dollars. That way the company can offset losses it made during 2023.
According to Reuters, which gathered the information from several sources, SK Hynix is now in talks with eight investment banks to realize the capital injection of about $12 billion in dollar bonds. These bonds should have a term of three to five years.
Offsetting losses
This is not the first bond issued by the processor manufacturer in the last period for capital generation. In April 2023, a bond was issued for the first time in 10 years to bring in $1.7 billion.
By issuing bonds and a capital infusion, the world’s second-largest chip maker may be trying to offset losses from 2023. According to SK Hynix, it suffered a loss of about $6.19 billion in the first three quarters of last year. This loss would come from the prolonged reduced demand for general-purpose processors for smartphones and laptops, among others.
Better outlook for 2024
Reuters expects the South Korean producer’s chip sales to rebound this year. Partly because it has reduced production and spread its focus to segments other than just processors for smartphones and laptops. SK Hynix is now especially focused on strengthening its market leadership in high bandwidth memory (HBM) processors, which can be used for (generative) AI applications and solutions.
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