Samsung's major shareholder publicly calls on others to follow SK Hynix's example and list in the United States, with the expectation of a good valuation.

A fund management company that has Samsung Electronics as its biggest bet is urging the South Korean company to list on the U.S. stock market, saying that this will increase the valuation of the chip manufacturer. Artisan Partners, which held 0.7% of Samsung by the end of last year, stated that after SK Hynix applied for the issuance of American depositary receipts this week, it is pushing Samsung to take the same action. David Samra, Managing Director of Artisan, stated that Samsung should follow the lead of its smaller competitors. Samra, in an interview on Wednesday, stated that he hopes SK Hynix's actions "will encourage Samsung to do the same." He mentioned that Artisan believes Samsung has been actively evaluating the cost-benefit analysis of listing on the ADR for years. Samsung representatives declined to comment. The CEO of SK Hynix this week heavily promoted the plan to list in the U.S., stating that it will help narrow the valuation gap with global competitors. These two chip manufacturers have been the main engines leading the South Korean stock market -- the South Korean benchmark Kospi index has risen more than double in the past year, with Samsung increasing by 181% and SK Hynix by 329%. Samra stated, "Ordinary American investors cannot buy Samsung shares at all because they cannot trade stocks listed in South Korea." He manages assets of over $50 billion. Samsung has been one of the global winners in the memory chip boom. Although SK Hynix hopes to raise funds through ADR issuance, Samra believes that it is the valuation that is the main motivation for Samsung to consider listing in the U.S. This month, Samsung announced plans to invest over 110 trillion Korean won (about $73 billion) in chip capacity expansion and R&D this year, a record investment aimed at seizing a leading position in the AI semiconductor field. Asian companies benefiting from listing in the U.S. include chip giant TSMC. TSMC's ADR issuance has attracted foreign investment capital, solidifying its popularity among American investors, especially in the AI-driven bull market. In addition to active investors, the large influx of passive funds through ETFs tracking U.S. stocks has further raised its valuation relative to stocks listed in Taipei. At one point last year, the price difference between the two markets exceeded 30%. TSMC raised $520 million through ADR issuance in 1997, and its total market value is now close to $1.7 trillion. Samra stated, "They can get a better valuation simply because more liquidity flows into the stock. I believe investors will have a more free flow of information." Focused on investing in companies outside the U.S., Artisan stated that it has held Samsung shares for over a decade. Market compilation data shows that by 2025, Samsung is the top holding of Artisan International Value Fund and one of the top ten fund holders of this South Korean chip manufacturer. Artisan does not hold SK Hynix. Samra stated that after the stock price doubled in the past year, Samsung is no longer cheap. The stock is currently trading at less than three times its book value, while its largest U.S. competitor, Micron Technology, is trading at less than five times. Samra stated, "We believe the current price is reasonable. So we don't think there is a large margin of safety. But we also don't think it's overvalued." Samsung is currently listed on the global depository receipt in London and delisted from Luxembourg at the end of 2024.