SK hynix Rebounds 4.42% as Solidigm Listing Is Shelved

SK Group Chairman Chey Tae-won's visits to a New York steakhouse have drawn attention to SK hynix's (000660.KS) plans for a NAND flash plant in New York state via its subsidiary Solidigm. SK hynix has halted Solidigm's IPO plans due to market conditions but remains committed to investment. The plant aims to diversify production and meet local manufacturing demands.

Samsung and SK Hynix are upgrading their China factories to produce advanced NAND memory chips, aiming to compete with Chinese rival YMTC and meet AI demand. Both companies face US regulatory hurdles for installing US-made equipment. Samsung plans to produce 286-layer chips in Xi'an, while SK Hynix targets 240-layer chips in Dalian. YMTC has gained market share, reaching 38.5% in China's NAND market. Both companies' shares rose 6% after the news.

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SK hynix has withdrawn its IPO plans for Solidigm, its US-based NAND flash memory chip subsidiary, due to opposition.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.