Potential Solidigm IPO Puts SK Hynix Shareholder Value in Focus

SK hynix’s consideration of a possible U.S. listing for its NAND flash subsidiary Solidigm is drawing sharply different assessments from investors, with the debate centered on how the move could affect the South Korean chipmaker’s existing shareholders.

Solidigm has met several investment banks to discuss potential underwriters, according to investment banking sources. Market observers estimate that the company could command a valuation of as much as $150 billion and raise up to $15 billion. SK hynix said it is reviewing options to strengthen Solidigm’s competitiveness but has not made a final decision.

The U.S.-based subsidiary was formed after SK hynix agreed to acquire Intel’s NAND flash memory and solid-state drive business for $9 billion. The transaction began in late 2021 and was completed in March 2025. Solidigm then went through a difficult industry downturn, recording combined net losses of more than 7 trillion won in 2022 and 2023.

Its performance has since improved substantially. Solidigm posted first-half 2026 revenue of 12.25 trillion won, up 265 percent from a year earlier, and net profit of 5.84 trillion won. That turnaround has helped make a potential listing a more prominent question for SK hynix and its investors.

Supporters say a separate listing could make Solidigm’s value more visible. SK hynix is closely associated with high-bandwidth memory and DRAM, which can leave its NAND business receiving less attention from investors. Under one scenario discussed by market participants, a 200 trillion won valuation and a retained 90 percent stake would leave SK hynix with a holding worth 180 trillion won.

They also argue that Solidigm remains a relatively modest contributor to its parent’s current results. The subsidiary represented about 9.3 percent of SK hynix’s consolidated revenue and 5.9 percent of operating profit in the first half of 2026, according to an analyst cited in the report.

Critics, however, say current contribution levels may understate Solidigm’s future importance. SK hynix shareholders financed the original acquisition and supported the business through the NAND downturn. Selling part of the subsidiary could therefore shift some future growth to new investors just as the business becomes profitable.

The possible overseas venue adds a regulatory dimension. Korea Exchange rules introduced in July require boards to meet shareholder-protection obligations when listed parents pursue domestic listings of subsidiaries. A U.S. offering would not undergo the exchange’s prior review, though Korean regulators could still impose penalties if applicable duties were breached.

With no final listing decision announced, investors are likely to focus on the size of any offering, SK hynix’s retained stake, the planned use of proceeds and the company’s explanation of how existing shareholders would share in Solidigm’s future growth.