SK Hynix Shelves Solidigm IPO Amid Chip Stock Pullback and Market Volatility

SK Hynix said on Friday it has put on hold the US listing plans for its Solidigm chip unit, citing capital market conditions and share price movements, in the latest sign that market volatility is cooling the IPO pipeline.

IPO Plan Hits Chip Stock Correction

SK Hynix said in a statement that the decision "does not reflect any change in views on Solidigm's growth prospects or investment demand."

The company added that financial market volatility has triggered a broader correction in the semiconductor sector, and it will continue to evaluate the timing, scale, and financing method of the Solidigm investment.

"Given recent capital market conditions and share price movements, Solidigm believes it is necessary to reassess whether an IPO at this time is the most favorable option for SK Hynix and its existing shareholders," the company added.

According to Reuters, citing sources familiar with the matter, the share sale could have raised $15 billion and valued the unit at $150 billion.

This month, sentiment toward AI and chip stocks has sharply deteriorated as investors worry that surging AI infrastructure costs and rising borrowing costs could squeeze spending and strain the debt underpinning the expansion.

Seoul Review and Washington Pressure Complicate Solidigm Plans

South Korea's Financial Supervisory Service has been reviewing whether the listing could violate dual-listing restrictions tightened in July.

SK Hynix completed a dual listing on the Nasdaq via ADRs in July, with its shares down 21.62% year-to-date.

Pressure from Washington is also mounting. President Donald Trump and Commerce Secretary Howard Lutnick have demanded that half of all chips used in the US be manufactured domestically.

IPO Window Narrows

The pause comes amid a decline in new listings, with Nasdaq's total Q3 listings falling to 167 from 205 in the same period last year.

OpenAI has ruled out an IPO in 2026, while Anthropic is reportedly planning to go public within the next few weeks.

Last month, smart ring maker Oura delayed its planned $2.2 billion US listing.

Share price action: On Thursday, SK Hynix's Nasdaq-listed ADR fell 8.07% to close at $131.69, and rose 4.60% in early pre-market trading Friday to $137.75.

In Seoul, shares closed up 4.42% on Friday, while the KOSPI index closed up 0.30%. Edge rankings show SK Hynix ADR's growth score at the 98th percentile and value score at the 63rd percentile.

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