SK Hynix Scraps Solidigm U.S. IPO Plans as Shares Drop 8%

SK Hynix has abandoned plans for a U.S. listing of its storage-chip subsidiary Solidigm, sending the stock down roughly 8%.
The proposed Nasdaq IPO could reportedly have raised around $10 billion to help fund Solidigm’s expansion.
But the plan faced shareholder opposition over potential dilution and concerns about separating ownership of a business investors already indirectly own through SK Hynix.
The company confirmed that Solidigm is ending both pre-IPO financing discussions and its evaluation of a public listing, citing capital market conditions and other factors.
That removes one potential source of funding at a time when memory and storage companies are investing heavily to capture AI-driven infrastructure demand.
Solidigm is particularly exposed to enterprise SSD demand, an area that could benefit from continued growth in AI data centers.
The decision now leaves SK Hynix looking for alternative ways to finance the subsidiary’s expansion.
For investors, the key question is whether those alternatives can support Solidigm’s growth without creating additional pressure on SK Hynix’s balance sheet or existing shareholders.
The move also comes as broader concerns around the scale and returns of AI capital spending continue to weigh on semiconductor valuations.