SK Hynix has put on hold its plans to take Solidigm public in the United States, in a decision announced on Thursday (22). The South Korean manufacturer cited volatility in financial markets, while South Korean authorities raised concerns about the possible effects of the transaction on the parent company's shareholders.
Solidigm, acquired from Intel, specializes in NAND flash memory and SSD storage drives. Its listing had been considered as an alternative to finance new industrial facilities in the United States, amid growing demand for storage in artificial intelligence data centers.
According to Reuters, market information indicated that the transaction could raise up to US$ 15 billion, with a potential valuation of US$ 150 billion for the subsidiary. Those figures were estimates for a possible offering, not an official valuation or funds actually raised.
SK Hynix clarified that the decision does not represent a revision of its industrial plans.
"The decision does not reflect any change in Solidigm's growth prospects or investment needs," the company said in a statement to Reuters.
The IPO would allow the subsidiary's expansion to be financed with external funds, reducing pressure on the parent company's cash. The transaction could also offer the market an independent valuation of the storage business.
Shareholder-protection rules complicate U.S. listing
The main regulatory obstacle involves South Korean rules against so-called dual listing, a situation in which a controlled company begins trading its own shares while the parent company remains listed.
On August 3, 2026, stricter rules for these transactions came into force. The requirements include assessing the effects on the parent company's investors, establishing protection mechanisms, consulting shareholders, formally deliberating on the transaction and disclosing the decisions. The provisions also cover certain listings abroad.
The regulation requires shareholder approval in specific cases, such as the listing of subsidiaries resulting from a corporate spin-off. For other corporate structures, the analysis considers the measures adopted to preserve investors' interests.
On October 19, Lee Chan-jin, director of South Korea's Financial Supervisory Service, said during a parliamentary hearing that regulators were examining whether Solidigm's possible offering would contravene those restrictions. The need for securities registration procedures in South Korea also remained under review.
The concern is that a subsidiary would have its valuation recognized separately in the market without the parent company's shareholders receiving proportional benefits. The debate therefore involves not only the ability to raise capital but also the distribution of the transaction's economic benefits.
SK Hynix did not directly attribute the suspension to the regulatory warnings. In its statement, it highlighted financial conditions and the need to reconsider whether a public offering would be the most advantageous alternative for the company and its investors.
Investments in Solidigm's expansion remain in the plans. The manufacturer said it will continue evaluating financing alternatives, without announcing a new timeline for the IPO.
