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The chipmaker cited market conditions and share-price trends. Its decision also follows regulatory scrutiny of whether a U.S. listing could breach South Korea’s dual-listing rules.
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SK Hynix has stopped evaluating a U.S. listing and related pre-IPO fundraising for Solidigm after reassessing market volatility and semiconductor share-price declines. Regulators had also questioned whether a U.S. listing could conflict with South Korean dual-listing rules, but made no finding of a violation. The decision removes one potential funding route, not the expansion requirement: SK Hynix says Solidigm’s existing facilities cannot meet rising AI-memory demand and it will pursue alternatives for a new U.S. fab.
SK Hynix shares fell as much as 3% in Seoul on October 23 after the announcement.
The Financial Supervisory Service was examining whether the IPO required review under minority-shareholder protections.
A listing could have supported Solidigm’s expansion and SK Hynix shareholder returns through dividends, buybacks, and share cancellations.
SK Hynix has halted its review of a potential U.S. stock-market listing for Solidigm, removing a financing option it had considered for the subsidiary’s expansion. Shares fell as much as 3% in Seoul on October 23, even as the chipmaker said Solidigm’s investment needs remain unchanged and it would pursue other funding options.
Before SK Hynix stopped the review, South Korean regulators had raised questions about the proposed listing. CNBC, citing Reuters, reported that the country’s financial regulator said on Monday that a U.S. listing of Solidigm could violate South Korean rules restricting dual listings.
Financial Supervisory Service Governor Lee Chan-jin said regulators were examining whether the IPO would require review under rules designed to protect minority shareholders. That was scrutiny of a possible listing, rather than a finding that Solidigm had broken those rules.
SK Hynix’s stated reason for stopping the process was financial. The company said it reassessed the potential offering after reviewing recent capital-market conditions and share-price trends. Increased volatility and a broader correction in semiconductor stocks had prompted it to reconsider whether a listing would benefit existing shareholders.
The decision covers both an initial public offering, or IPO, and potential fundraising before a listing.
The original financial case extended beyond raising money for Solidigm. SK Hynix said an IPO could support the subsidiary’s expansion while giving the parent greater flexibility to return money to shareholders through dividends, share buybacks and share cancellations.
The financing review was tied to a concrete manufacturing need. SK Hynix had been exploring funding options for a new U.S. semiconductor fabrication plant amid growing demand for AI memory.
According to SK Hynix, Solidigm’s existing production facilities have limited capacity to meet rising AI-driven memory demand. The company cited that constraint as a reason additional manufacturing capacity is needed in the United States, even as it stepped back from pursuing the listing.
SK Hynix said it would continue exploring alternative financing to support Solidigm’s growth and enhance shareholder value.
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