SK Hynix's Solidigm weighs IPO that could value unit at up to $150 billion, sources say

SK Hynix's subsidiary, Solidigm, is contemplating an initial public offering (IPO) in the coming year that could be valued at up to $150 billion, sources reveal. Representatives familiar with the situation disclosed that the company has been conducting pitch meetings with investment banks for potential roles in the IPO, also known as a bake-off, signifying a significant step towards potentially becoming the largest-ever U.S. semiconductor listing.

The IPO might generate proceeds of $15 billion, as asserted by three sources speaking anonymously due to the sensitive nature of the information. Nevertheless, the exact size of the deal and the timing are still in the initial phases and might undergo modifications based on market dynamics. Should the IPO materialize, it would rank among the largest semiconductor listings in history and provide a standalone valuation for Solidigm, an integral component of SK Hynix's storage portfolio.

Moreover, the IPO aims to capitalize on the robust investor interest in firms associated with artificial intelligence infrastructure, a factor that has contributed to the semiconductor sector's recent surge.