SK hynix has shelved plans to float Solidigm while keeping its ambition to build a US chip factory to meet demand for enterprise SSDs.
According to TechSpot, the memory maker has stopped reviewing both an initial public offering and a pre-IPO funding round, citing market volatility and falling semiconductor shares.
The factory remains part of its expansion plans, leaving the company with the familiar problem of wanting a very expensive building without settling how to pay for it.
Solidigm’s existing manufacturing capacity barely covers projected requirements. Growing AI infrastructure deployments are increasing demand for high-capacity storage, putting pressure on the subsidiary to produce more NAND.
The planned expansion would support floating-gate 3D QLC NAND production for enterprise SSDs. QLC stores four bits per memory cell, while stacking cells vertically increases storage density.
SK hynix says it will continue examining other funding options. It had considered direct investment alongside outside financing and a public listing. A flotation would have brought in equity without adding debt, while giving Solidigm a market valuation separate from its parent.
SK hynix believes its share price doesn’t fully reflect Solidigm’s worth. However, listing the subsidiary during weak market conditions could leave it carrying another valuation the company dislikes.
The cocaine nose jobs of Wall Street can be enthusiastic about the AI boom while remaining less enthusiastic about paying the construction bill.
A new fab would expand SK hynix’s US manufacturing footprint and provide additional output for Solidigm’s storage business. The company has not disclosed an opening date, production capacity or the project’s precise scale.
Modern 3D NAND factories can cost tens of billions of dollars, although no confirmed budget has been supplied for this facility.
Internally generated cash and borrowing remain possible funding routes, but SK hynix has not announced which it intends to use.
Solidigm and SK hynix together hold 21.1 per cent of the enterprise SSD market. That combined figure gives no indication of Solidigm’s standalone profitability or how much cash it could contribute towards construction.
