SK hynix Drops Solidigm IPO, Confirms Plans for New US NAND Fab

SK hynix announced on Friday that it had dropped plans for a possible initial public offering of Solidigm, its U.S.-based enterprise SSD subsidiary, pointing to unfavorable stock market conditions and trends in semiconductor share prices, according to Tom's Hardware.

At the same time, the company confirmed it intends to build a new manufacturing plant for Solidigm in the United States to meet rising demand for enterprise SSDs. While an IPO could have provided funding for such a facility, SK hynix said the subsidiary's expansion remains a priority. The company has not disclosed the planned fab's capacity, the level of investment required, or a construction timeline.

Solidigm focuses on high-capacity data center SSDs built on floating gate 3D QLC NAND memory. Tom's Hardware reported that as AI infrastructure deployments grow, demand for high-capacity storage is increasing, and Solidigm's current manufacturing capacity is only barely enough to cover its projected needs. A U.S. facility could also expand SK hynix's American manufacturing presence amid on-shoring trends.