SK Hynix drops Solidigm IPO plan; shares fall 3% in Seoul

SK Hynix shares fell up to 3% in Seoul on Friday after the company halted a review of a potential U.S. IPO for its subsidiary Solidigm, citing market volatility and share price concerns. The chipmaker said an IPO could have funded Solidigm's expansion and boosted shareholder returns, but financial market turbulence and a semiconductor stock correction prompted reassessment. Solidigm's U.S. production capacity is insufficient for AI-driven memory demand, and South Korea's financial regulator is examining whether the listing would violate dual-listing rules. SK Hynix affirmed Solidigm's investment needs are unchanged and it will explore alternative financing. The decision follows a broader tech selloff, with the Nasdaq falling 2.6% Thursday, while Nvidia CEO Jensen Huang downplayed oversupply fears for memory chips by 2029.