SK Hynix launches $28.6 billion share buyback and cancellation

SK Hynix canceled plans for a $10 billion U.S. IPO of its Solidigm unit due to regulatory opposition and shareholder concerns, citing market conditions. The decision follows scrutiny over potential share dilution and ownership structure complexities. SK Hynix shares rose after the announcement, despite broader market declines. Solidigm, a major flash memory producer, had planned to list as soon as next year, aiming for a valuation of up to $100 billion.

SK hynix (000660.KS) shares rose 4.4% after halting Solidigm's U.S. listing, shifting focus to Q3 earnings and shareholder returns. The company plans to return over 30 trillion won ($20.9B) to shareholders. Analysts expect record earnings, with revenue and operating profit up 301.76% and 576.11% YoY respectively. Samsung Electronics (005930.KS) also reported strong preliminary Q3 results.

SK hynix has withdrawn its IPO plans for Solidigm, its US-based NAND flash memory chip subsidiary, due to opposition. Solidigm will now seek alternative funding for a new US fab, estimated to cost in the trillion-won range. SK hynix may support the project through a capital increase, or Solidigm may pursue direct borrowing. The move is driven by rising AI-driven NAND demand and US semiconductor production pressures.

SK Hynix has postponed the US IPO of its subsidiary Solidigm, citing unfavorable market conditions and semiconductor stock declines. The IPO, targeting $10B-$15B at a valuation of up to $150B, was intended to fund Solidigm's expansion. SK Hynix's ADRs, priced at $149 in July, traded at $131.69 on Thursday. The decision follows broader market selloffs in AI and semiconductor stocks.

SK Hynix canceled the planned Nasdaq IPO of its subsidiary Solidigm due to South Korean regulatory objections. The IPO, potentially raising $10-15 billion, was blocked over rules against dual listings. SK Hynix shares rose over 3% on the news, reflecting relief from regulatory uncertainty. Solidigm, acquired from Intel, turned its first profit in early 2026. The withdrawal comes amid high AI-related capital spending and semiconductor market volatility.

SK hynix abandons Solidigm IPO plans due to unfavorable market conditions, focusing on U.S. fab expansion. Solidigm, a U.S.-based SSD subsidiary, faces growing demand for enterprise SSDs. SK hynix cites market volatility and semiconductor stock trends as reasons for halting IPO plans, but prioritizes Solidigm's expansion.