SK Hynix's Solidigm IPO withdrawal benefits Micron and Sandisk

SK Hynix has withdrawn the US initial public offering (IPO) plan for its Solidigm subsidiary, reducing the risk of new NAND flash supply entering the market, according to LYNX Equity Strategies, which said this could benefit Micron Technology and Sandisk. Analysts led by KC Rajkumar noted in an October 23 report that the IPO would have funded expansion of Solidigm's NAND manufacturing capacity in the US, potentially increasing global supply over three years and pressuring prices and competitors. The withdrawal eliminates that funding avenue, lowering the possibility of capacity expansion that could have weighed on NAND prices. The planned US facility was expected to be developed at Intel's Ohio campus as a joint venture between SK Hynix and Intel, with fewer trade restrictions than Solidigm's existing China operations. LYNX said the news is a positive for Micron and Sandisk, though current market conditions may limit stock gains, while Intel faces a slight negative from losing a potential manufacturing project.