SK Hynix Halts Solidigm IPO Review as Shares Fall 3%

SK Hynix shares fell as much as 3% in Seoul on Friday morning, October 23, 2026, after the South Korean chipmaker halted its review of a potential US initial public offering (IPO) for its subsidiary Solidigm. The decision followed increased financial market volatility, a correction in semiconductor stocks and regulatory scrutiny in South Korea, as the company continued seeking funding options to expand US manufacturing capacity for AI memory chips.

SK Hynix said Solidigm had stopped evaluating potential pre-IPO fundraising and IPO options after assessing capital market conditions and share price trends. The company said Solidigm's investment requirements remained unchanged and that alternative financing methods would continue to be explored.

The proposed listing could have provided funding for Solidigm's expansion while giving SK Hynix greater financial flexibility for shareholder returns, including dividends, share buybacks and share cancellations. However, the broader market downturn prompted the company to reassess whether a public offering would benefit existing shareholders.

SK Hynix also identified capacity constraints at Solidigm's existing production facilities as a challenge amid growing demand for AI-driven memory. Additional manufacturing capacity in the United States remains an investment priority, making alternative funding arrangements important to the subsidiary's expansion plans.

Explaining the decision, SK Hynix said the subsidiary would discontinue its assessment of listing options while continuing to consider other ways to finance its investment needs.

"Solidigm will halt its review of potential pre-IPO and IPO options," SK Hynix said in a statement.

The decision came after South Korean regulators raised concerns about whether a US listing would comply with domestic rules restricting dual listings. According to Reuters, the country's financial regulator said Monday that a potential Solidigm listing in the United States could violate those requirements.

Financial Supervisory Service Governor Lee Chan-jin said regulators were examining whether the proposed IPO would require a review under rules intended to protect minority shareholders. The regulatory scrutiny added another consideration to SK Hynix's assessment of the potential offering.

Meanwhile, US technology stocks faced mounting pressure over concerns about AI spending and the pace of infrastructure investment. The Nasdaq Composite fell 2.6% on Thursday, October 22, marking its worst session since June, while Nvidia dropped 4.4% and Advanced Micro Devices declined 8.1%.

Nvidia CEO Jensen Huang told CNBC on Thursday that he did not expect an oversupply of memory chips by 2029, despite concerns about weakening demand. His comments came as memory stocks faced selling pressure across the semiconductor sector.

Concerns about financing risks and the pace of AI infrastructure expansion also weighed on data center companies. CoreWeave shares plunged 10% on Thursday, extending their monthly decline to 36%, while Australia's NextDC fell nearly 40% on Wednesday after cutting its earnings forecast.