EL7.AI
StocksMedium•22 October 2026•
4 min read

SK Hynix halts review of Solidigm IPO at potential valuation of up to $150 billion

Key Facts

1Reuters reported, citing sources before the review was halted, that the potential offering could value Solidigm at up to $150 billion.
2The potential offering could raise $15 billion, according to Reuters sources, with the size and timing remaining subject to change.
3SK Hynix's cash and cash equivalents stood at about 88 trillion won at the end of the second quarter of 2026.
4SK Hynix stressed that halting the IPO review did not reflect any change in Solidigm's growth prospects or investment needs.

SK Hynix said in a statement dated October 23, Korea time, that it had halted its review of pre-IPO financing and initial public offering options for its Solidigm unit, after earlier estimates pointed to a potential valuation of up to $150 billion. The company attributed the decision to capital market conditions and share price trends amid heightened volatility and a broader correction in semiconductor stocks. Reuters had reported, citing sources, that Solidigm could raise $15 billion from the potential offering. The sources said at the time that the size and timing were preliminary and subject to change depending on market conditions. The decision suspends consideration of financing options that had been under review at a time when the unit needs funding to expand production in the United States. The company said it had reassessed the benefits of an offering for shareholders in light of market conditions.

The fundraising options were intended to finance a new plant in the United States to meet growing demand for memory used in artificial intelligence, according to SK Hynix's statement. The company said limited capacity at Solidigm's existing facilities made it necessary to secure additional production facilities there. The IPO review was thus linked to financing increased manufacturing capacity as part of the unit's business expansion needs. SK Hynix stressed that halting the review did not reflect any change in Solidigm's growth prospects or investment needs. The need to expand production remained, in the company's assessment, despite its changed position on raising funds through an offering.

Solidigm originated from the flash memory and solid-state drive businesses SK Hynix acquired from Intel. The announced value of the memory and storage acquisition was $9 billion, according to SK Hynix's original acquisition announcement. Solidigm's business centers on high-capacity enterprise drives used in AI data centers. These operations place the unit within the group's businesses supplying memory and storage for AI infrastructure. The company linked the planned new U.S. plant to meeting growing demand for these products.

Against the backdrop of demand for Solidigm's products, CoreWeave signed a multiyear strategic agreement with the company to support its AI cloud platform. The agreement gives CoreWeave priority access to enterprise solid-state drive supply capacity, according to Solidigm's announcement. It links the cloud platform's needs with the storage supplies provided by the unit. The companies described storage as a critical constraint in capacity planning as AI demand accelerates and supply tightens across the industry. They said in the agreement announcement that "storage, in particular, has become a critical constraint in capacity planning."

The consideration of financing options follows strong growth in SK Hynix's results for the second quarter of 2026, the latest quarter for which the company had reported results before the decision. Revenue rose 257% year on year, while operating profit increased 557%, according to the earnings statement. Cash and cash equivalents stood at about 88 trillion won at the end of the same quarter. However, the company said in an earlier statement on Solidigm that having sufficient liquidity did not automatically make funding all investments from internal cash the optimal choice. It said it allocates resources across high-bandwidth memory, server memory and enterprise drives. This allocation places Solidigm's financing needs within decisions on the group's investments across multiple businesses.

SK Hynix said it would continue to assess the timing, scale and financing of investment after halting its review of offering options. It will also explore options to support Solidigm's growth and enhance shareholder value, according to its statement. The forthcoming review thus covers both the size of the investment commitment and how to raise the necessary funds. These steps come as the company reaffirms that the unit's investment needs and growth prospects remain unchanged. SK Hynix is scheduled to report third-quarter results on October 28, Seoul time.