Solidigm halts IPO review after reports of potential $150 billion valuation
Key Facts
SK Hynix announced it had halted its review of pre-IPO financing options and a potential initial public offering of its subsidiary Solidigm, after press reports outlined a possible listing at a valuation of up to $150 billion. The group attributed the decision in its statement to "capital market conditions" and share price trends, while stressing that Solidigm's growth prospects and investment needs had not changed. It placed the move in the context of increased market volatility and a broader correction in semiconductor stocks. It said the performance of both the parent company and Solidigm remained robust despite the correction. Reuters had reported, in an article carried by Investing.com, that Solidigm was considering an IPO in 2027 at that potential valuation. The report said the company was targeting proceeds of up to $15 billion from the offering. Those estimates formed part of a financing option under consideration at the subsidiary.
An SK Hynix filing with the U.S. Securities and Exchange Commission in September 2026 had previously addressed another route to raising capital ahead of an IPO. The filing cited the Korea Economic Daily as reporting that Solidigm was seeking to raise about 5 trillion won through that route. The group said at the time that financing decisions had not been finalized. It was also considering using internal funds to cover the subsidiary's required investments. But it said that "the availability of sufficient capital does not automatically mean that using internal cash for all investments is the optimal choice." It linked its assessment of any financing structure, whether funded from its own resources or from outside the group, to its overall economic impact on existing shareholders. According to its earlier clarification, the criteria for choosing between alternatives include that impact alongside the financing structure itself.
Solidigm needs to expand its production capacity to meet growing demand, according to its parent company's statement. SK Hynix said available capacity at Solidigm's existing facilities was limited relative to that demand. It added that this required securing "additional production facilities in the United States." On the customer side, CoreWeave announced a direct, multiyear agreement with Solidigm to secure its enterprise storage drive requirements. The agreement gives CoreWeave priority in the allocation of capacity for those drives, according to its statement. CoreWeave linked the agreement to accelerating enterprise adoption of artificial intelligence, alongside tight drive supply across the industry. Solidigm has operated under SK Hynix as an independent U.S. subsidiary since December 2021.
The review of Solidigm's financing comes as the group holds a substantial cash position, with net cash reaching 69.4 trillion won at the end of the second quarter of 2026. SK Hynix reported revenue of 79.3187 trillion won in its results for the same period. Operating profit for the quarter reached 60.5426 trillion won, according to the earnings statement. On commercial relationships, the group said it had finalized long-term agreements with about 10 customers. The customers with which it signed those agreements include key strategic partners. The group linked the contracts to greater supply stability. It also said the agreements supported the stability of its business, as part of the results and commercial developments it presented for the second quarter.
Alongside the investment requirements, SK Hynix's board approved a 40 trillion won share buyback program in August 2026. The resolution stipulated that all repurchased shares would be canceled under the shareholder return program announced by the group. The company also announced plans to raise those returns to more than 50% of cumulative free cash flow over the program period. As for Solidigm, the group said it would continue assessing the timing, size and financing methods for the required investments after halting the IPO review. Details of the size of additional shareholder returns are scheduled to be announced alongside the release of third-quarter results, according to its statement on the program. It said the announcement would also include implementation details, following board approval. SK Hynix set 28 October 2026 as the date for announcing its third-quarter results for the year.