SK Hynix halts review of US IPO for Solidigm unit

SK Hynix said it would stop reviewing a potential US initial public offering for its memory subsidiary Solidigm, and its shares closed higher on Oct. 23 after falling as much as 3% earlier in the session, CNBC reported.

The South Korean chipmaker said it shelved the review after weighing capital market conditions and its own share price, citing increased volatility and a broader pullback in semiconductor stocks. It had considered a listing as a way to fund Solidigm's expansion while preserving dividends, buybacks and share cancellations. SK Hynix said Solidigm's investment needs are unchanged and that it would look at other financing options, including for a new US semiconductor fabrication plant, as demand for AI memory grows.

The move follows regulatory attention in South Korea, where the Financial Supervisory Service said on Oct. 19 that a US listing of Solidigm could conflict with rules on dual listings, according to Reuters.

Josh Gilbert, lead analyst for APAC at eToro, said the rebound showed investors had been uneasy about the plan, and that halting it "removes a governance worry and keeps Solidigm's value inside the company."

The decision came as AI-linked shares slid. The Nasdaq Composite fell 2.6% on Oct. 22, with Nvidia down 4.4% and Advanced Micro Devices down 8.1%.

This story was first reported by CNBC.