US-based Solidigm considers IPO at valuation of up to $150 billion — Channel NewsAsia
Solidigm, the US-based subsidiary of South Korean chipmaker SK Hynix, is considering an initial public offering in the United States as early as next year. According to three informed sources, the company’s potential valuation could reach $150 billion.
As Channel NewsAsia reports, Solidigm held presentation meetings this week with investment banks seeking roles in organizing the IPO. Sources said the company could raise about $15 billion. At the same time, the size and timing of the deal remain at an early planning stage and may change depending on market conditions.
Potential major offering
According to the sources, the listing could become one of the largest share offerings in the US semiconductor sector. It could also provide a separate valuation for the business, which is an important part of SK Hynix’s data storage portfolio. The potential IPO could benefit from strong investor interest in companies linked to artificial intelligence infrastructure.
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Solidigm is based in Rancho Cordova, California. The company is SK Hynix’s US unit in NAND flash memory and solid-state drives, and it also supplies enterprise SSDs for servers, cloud infrastructure and data centers. It is seeking to stand out with high-capacity drives for artificial intelligence applications.
Origins of the business
In 2020, SK Hynix announced a deal to acquire Intel’s NAND memory and SSD business for about $9 billion. In 2021, these operations were combined with Solidigm, which was launched as a separate subsidiary. Last month, SK Hynix said it was considering measures to strengthen Solidigm’s competitiveness following reports of possible pre-IPO financing of about 5 trillion won, or $3.6 billion.
Solidigm declined to comment, while SK Hynix did not respond to a request for comment. According to sources’ estimates, a valuation of up to $150 billion would substantially exceed the approximately $54 billion at which Arm Holdings was valued during its 2023 debut, as well as Cerebras Systems’ roughly $56 billion fully diluted valuation during its IPO in 2026.
