Solidigm seeks new funding path for US fab after SK hynix scraps IPO plan

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 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.

SK Hynix suspended Solidigm's U.S. IPO, citing market volatility and regulatory concerns, despite no change in Solidigm's growth prospects. The IPO could have raised $15bn, valuing Solidigm at $150bn. SK Hynix shares rose 4.4%. South Korean authorities are discussing U.S. semiconductor investments with Washington.