SK Hynix's Solidigm Weighs IPO at up to $150 Billion Valuation, Sources Say

Solidigm, the U.S.-based memory chip subsidiary of SK Hynix, is exploring an initial public offering as early as next year that could value the unit at up to $150 billion, according to people familiar with the matter. A listing of this magnitude would rank among the largest-ever U.S. semiconductor IPOs, potentially raising $15 billion for the company.

IPO Preparations Underway

Solidigm has taken a concrete step toward a public listing by holding meetings with investment banks this week to pitch for roles on the potential offering, a process known as a "bake-off," sources told Reuters. This marks a formal move to evaluate underwriters for a future deal.

The sources, who spoke on condition of anonymity, cautioned that the plans remain at an early stage. The final timing and size of the IPO could change depending on market conditions and investor sentiment. Solidigm declined to comment, and parent company SK Hynix did not immediately respond to a request for comment, according to the report.

Strategic Rationale and Market Context

The potential listing aims to capitalize on strong investor demand for companies essential to the artificial intelligence infrastructure boom, which has propelled valuations for semiconductor and hardware firms. An IPO would establish a standalone public valuation for Solidigm, a key part of SK Hynix's storage portfolio, and is seen as a move to enhance its overall competitiveness.

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This development follows reports last month that SK Hynix was considering measures to boost Solidigm after media reports indicated the unit was exploring a pre-IPO fundraising round of about $3.6 billion (5 trillion won).

Business Background

Solidigm was formed after SK Hynix acquired Intel Corp.'s NAND flash memory and solid-state drive (SSD) business for approximately $9 billion in a deal announced in 2020. The California-based subsidiary specializes in enterprise SSDs used in servers, cloud infrastructure, and data centers.

A valuation approaching $150 billion would far exceed other recent high-profile semiconductor IPOs. For comparison, Arm Holdings was valued at roughly $54 billion at its market debut in 2023.