SK Hynix's Solidigm weighs IPO valuing unit up to $150 billion

SK Hynix's US subsidiary, Solidigm, is exploring an initial public offering as early as next year, with sources indicating a potential valuation of up to $150 billion. The company, which specializes in NAND flash memory and solid-state drives, held pitch meetings with investment banks this week. This process, known as a "bake-off," is a significant step toward what could be one of the largest semiconductor IPOs on record.

Solidigm could aim to raise $15 billion in the offering, though the plans remain in early stages and are subject to market conditions. The listing would provide a standalone valuation for the business, which is a key part of SK Hynix's storage portfolio and seeks to capitalize on strong investor demand for companies involved in artificial intelligence infrastructure.

SK Hynix acquired Intel Corp's NAND memory and SSD business for approximately $9 billion in 2020, integrating it with Solidigm, which was established as a standalone subsidiary in 2021. The acquisition aimed to bolster SK Hynix's NAND flash and enterprise SSD businesses and expand its global memory market presence. Solidigm supplies enterprise SSDs for servers, cloud infrastructure, and data centers, focusing on high-capacity storage solutions for AI applications.

Earlier this month, Reuters reported that Solidigm was considering building a NAND flash memory chip factory in the US. In August, SK Hynix indicated it was exploring measures to enhance Solidigm's competitiveness.