SK hynix has not made a decision on funding Solidigm — Korea Herald

In South Korea, chipmaker SK hynix said it has not made a specific decision regarding the future operations or funding of its U.S. subsidiary Solidigm. The company made the statement amid investor concerns that a separate listing of Solidigm shares could reduce the value of the holdings of existing SK hynix shareholders.

As Korea Herald reports, SK hynix is considering various options to strengthen Solidigm’s competitiveness. The chipmaker stressed that it would assess any decision to raise funds in view of its impact on existing shareholders.

Investment in production and technology

Solidigm was established after SK hynix acquired Intel’s NAND flash memory and solid-state drive business. The U.S. division specializes in high-capacity enterprise SSDs for artificial intelligence data centers and is considering investments to expand production capacity and technological competitiveness.

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SK hynix said it has sufficient internal financial resources for investment, but using its own funds would not necessarily be the best option. The company is simultaneously allocating investments among high-bandwidth memory, server DRAM, and enterprise SSDs.

Concerns over a possible IPO

Reuters previously reported that Solidigm had held meetings with investment banks that offered options for supporting a potential initial public offering. According to the agency, the company could have been seeking a U.S. listing as early as next year.

The Korea Corporate Governance Forum, a non-profit organization founded by activist investors, called on SK hynix to stop such discussions. It believes that listing Solidigm within the existing ownership chain of SK — SK Square — SK hynix and through a U.S. structure would create a five-tier multiple-listing system. SK hynix said that increasing long-term corporate value and shareholder value would be the priority in choosing any option.