SK Hynix puts US IPO of chip unit Solidigm on hold after Seoul authorities raise concerns
The South Korean chip giant said it plans to continue to explore ways to fund Solidigm’s expansion.
On October 23, SK Hynix suspended its plans for a US IPO of its Solidigm chip unit due to market volatility and concerns raised by South Korean authorities. The listing of Solidigm, a former Intel business specializing in NAND flash memory and solid-state drives, was intended to fund a new US factory and meet the growing demand for chips in AI data centers, potentially raising $15 billion and valuing the unit at $150 billion.
The South Korean chip giant, which went Nasdaq-listed in July, stated that it would continue exploring ways to fund Solidigm's expansion and boost shareholder value. The decision was not attributed to a change in Solidigm's growth prospects or investment needs. The move may have implications for the Trump administration's efforts to pressure foreign chipmakers to establish facilities in the US.
SK Hynix had reportedly sought the US listing as a bargaining chip, linking it to approval for exporting US chipmaking equipment to China. South Korean authorities are examining whether a US IPO of Solidigm would require review under the country's dual-listing restrictions, which were tightened in July to strengthen shareholder protections.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
