In April 2023, SK hynix raised $1.7bn as part of its first convertible bond sale in a decade. Credit: Sobeautiful/Shutterstock.

South Korean memory chip manufacturer SK Hynix is looking to raise $1bn (Won1.3trn) through a dollar bond deal, reported Reuters, citing sources.  

In a statement, the chipmaker said it will determine the issue size at a later date based on market conditions.  

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According to a term sheet seen by the publication, SK hynix has hired eight investment banks to work on the deal, which may have tenure of three or five years. 

During the first three quarters of 2023, SK hynix reported combined operating losses of Won8.1trn. 

The losses were primarily attributed to a prolonged decline in the demand for commodity chips used in computers and smartphones. 

However, after chipmakers’ production reduction, memory chip prices are anticipated to rebound this year. 

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SK hynix is allocating resources to maintain its leadership in high bandwidth memory chips, which are utilised in generative artificial intelligence (AI) use cases. 

In April 2023, SK hynix raised $1.7bn as part of its first convertible bond sale in a decade.  

At the time, the South Korean company said it would use the proceeds from the bond sale to finance operations including purchasing supplies for chip manufacturing. 

Separately, SK hynix announced that it will present its ultra-high-performance memory technology for future AI infrastructure at CES 2024. 

CES 2024 is a technology conference that will be taking place from 9 January 2023 to 12 January 2023 in Las Vegas. 

SK hynix president (head of AI infra) Justin Kim said: “We are thrilled to showcase our technology, which has risen to the core of the AI infrastructure in the US, home to AI technology. SK hynix will step up its efforts for collaboration with global players while seeking to accelerate a turnaround in business with its leadership in the AI memory space.”