According to a corporate disclosure to the Korea Exchange last week, SK hynix said it had been exploring ways to strengthen its California-based semiconductor subsidiary's competitiveness including a possible U.S. listing. However, an SK hynix spokesperson declined to provide additional details, telling AJP that "no specific decision has been made."
The possibility has divided the market, with supporters seeing it as a potential way to raise billions of dollars for future investment, while critics warn that bringing in outside investors could reduce existing shareholders' share of Solidigm's future profits.
Its shares plunged 10.37 percent last Thursday, a day after the corporate disclosure. The stock has since rebounded, trading 6.81 percent higher at 1,757,000 won as of early Tuesday morning.
At the center of the debate is the possibility of pre-IPO fundraising ahead of a U.S. listing. Market speculation has focused on Solidigm raising up to 10 trillion won (US$7 billion) from private investors at a valuation of around 50 trillion won. A pre-IPO involves selling shares to private investors before a company goes public.
It remains to be seen whether SK hynix will make any decision before Sept. 4, when it is scheduled to release another corporate disclosure.
Who gets the upside?
Much of the concern is about the timing. SK hynix shareholders endured years of losses from the NAND business acquired from Intel, but Solidigm has now returned to profitability. Critics argue that a pre-IPO followed by a separate listing could allow new investors to take a stake just as the business enters a stronger period.
If outside investors acquire shares through a pre-IPO and later public offering, SK hynix's ownership of Solidigm would decline, leaving existing shareholders with a smaller share of the subsidiary's future gains.
There is also concern over how Solidigm's profits and cash would reach SK hynix shareholders after a separate listing. Money generated by Solidigm would first remain with the U.S. subsidiary before flowing back to the South Korean parent and its shareholders.
The Korea Corporate Governance Forum, a nonprofit group that works to improve corporate governance and protect shareholder interests has taken a stronger stance, criticizing a potential Solidigm IPO for making SK's ownership structure even more complex by adding another publicly traded company under an already listed parent. The forum has called for discussions on the listing to be halted.
Critics also question the need for outside funding. The company posted record second-quarter earnings and recently completed a major fundraising, leaving it with ample cash. That has raised questions over why new investors need to be brought into Solidigm at this point.
Others, however, see the potential transaction as a way to raise substantial funds for future investment.
Solidigm's main revenue source is high-performance enterprise solid-state drives, or eSSDs, used in servers and data centers. The business still relies heavily on SK hynix's design and production technology, supporting the view that selling part of the subsidiary would have only a limited impact on the value of its parent.
The potential amount is significant. Mirae Asset Securities estimates that selling part of the company's stake in Solidigm could give the chipmaker about $15 billion in investment capacity in the U.S.
The brokerage said such a deal could help recover some of the money spent on the Intel NAND acquisition while securing funds for further investment.
For now, the company has yet to decide how it will move forward.
AJP Takeaways:
• SK hynix said on Aug. 18, 2026, that no decision had been made on plans involving its U.S. subsidiary Solidigm, following an Aug. 5 disclosure that it was reviewing options to strengthen the company's competitiveness.
• Market discussions have centered on Solidigm potentially raising up to 10 trillion won ($7 billion) in a pre-IPO at a valuation of around 50 trillion won before a possible U.S. listing.
• Critics warn that bringing outside investors into Solidigm after the business returned to profitability could reduce SK hynix's ownership and leave existing shareholders with a smaller share of its future gains.
• Supporters argue that selling part of Solidigm could provide substantial funding for future investment. Mirae Asset Securities estimates the transaction could give SK hynix about $15 billion in investment capacity in the United States.
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