SK Hynix's Solidigm weighs IPO that could value the unit at up to $150 billion, sources say
Chipmaker SK Hynix's Solidigm is exploring a monumental initial public offering potentially worth $150 billion, aiming to secure approximately $15 billion. Currently in the early phases of planning, Solidigm specializes in NAND flash memory and solid-state drives, vital for AI technologies. This IPO has the potential to become one of the largest in semiconductor history in the U.S., alongside…
The US semiconductor subsidiary of South Korean chipmaker SK Hynix, known as Solidigm, is contemplating an initial public offering (IPO) that could potentially value the company at up to $150 billion, sources close to the matter suggest. The IPO could take place as early as next year, with SK Hynix holding pitch meetings with investment banks this week in a process called a bake-off, according to a fourth source.
The anticipated IPO could be one of the most substantial semiconductor listings on record, potentially generating $15 billion in revenue, as per three sources speaking on the condition of anonymity. However, the size of the deal and the timeline remain tentative and subject to change depending on market conditions.
Solidigm, headquartered in Rancho Cordova, California, specializes in NAND flash memory and solid-state drive (SSD) technologies. It is a key component of SK Hynix's storage portfolio following its acquisition by the company in 2020, as part of a $9 billion deal that integrated Intel's NAND memory and SSD business into SK Hynix's operations, which was launched as an independent subsidiary in 2021.
The IPO aims to capitalize on the strong investor interest in entities linked to artificial intelligence (AI) infrastructure, which has contributed to the rise in semiconductor and hardware stocks. Solidigm targets enterprise SSDs for servers, cloud infrastructure, and data centers, differentiating itself through high-capacity storage products tailored for AI applications, a sector experiencing surging data volumes necessitating advanced storage solutions.
Reports indicate that Solidigm is contemplating the construction of a NAND flash memory chip factory in the United States, with upstate New York being considered as a prime candidate, as part of broader efforts to bolster manufacturing capacity. SK Hynix has also been contemplating strategies to enhance Solidigm's competitiveness amid reports of potential pre-IPO fundraising of about $3.6 billion.
A valuation of up to $150 billion would significantly surpass the valuations of recent semiconductor IPOs, such as Arm Holdings' $54 billion debut in 2023 and Cerebras Systems' approximately $56 billion fully diluted valuation during its 2026 IPO.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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