SK Hynix stated that there is "nothing confirmed" regarding the possibility of an initial public offering (IPO) for its US grand-subsidiary Solidigm, and that it will prioritize long-term corporate valuation and shareholder value as its primary criteria for decision-making. The company took this stance to quell controversy over potential erosion of shareholder value following reports of Solidigm's listing plans.
On the 1st, SK Hynix stated on its own newsroom regarding the possibility of a US-based Solidigm IPO that "while we are considering various measures to strengthen Solidigm's competitiveness, nothing has been finalized," and added, "Regardless of the measure chosen, we will take long-term corporate valuation and enhancing shareholder value as our most important criteria for judgment."
Recently, concerns have arisen among some regarding the erosion of shareholder value due to a duplicate listing, following reports that Solidigm has begun selecting an underwriter for its listing on the US capital market. It is also known that Act, a platform for minority shareholders, plans to formally inquire with the Korea Exchange about the application criteria for duplicate listing regulations concerning Solidigm's listing.
Solidigm was established when SK Hynix acquired Intel's NAND and SSD (Solid State Drive) business in 2021. Currently, it is expanding its business centered on high-capacity eSSDs (enterprise SSDs) for AI data centers.
SK Hynix explained on the same day that "considering the market and business environment, we are continuously reviewing the necessity of investment to secure production capacity and technological competitiveness," and stated that "options for capital utilization related to Solidigm are matters to be reviewed by comprehensively considering the company's overall investment plans, financial condition, and capital allocation."
It further stated, "SK Hynix currently has sufficient financial capacity and can consider various options for capital utilization, including utilizing internal funds," while adding, "However, having funds does not mean that making all investments with internal funds is always the best option."
SK Hynix said, "We are allocating resources by comprehensively considering investment needs across various business areas such as HBM (High Bandwidth Memory), server DRAM, and eSSD," and noted that "the method of raising investment funds needs to be judged by considering not only specific businesses but also the impact on the company's overall investment plans and capital allocation."
Additionally, it stated, "In particular, memory is a capital-intensive industry where business cycles and timing of investment significantly affect competitiveness," and added that "how to utilize investment resources, such as internal funds and external capital, is a matter to be reviewed by considering market conditions, timing of investment, and the company's financial condition."
Regarding the use of external capital, SK Hynix clearly stated its position that it will thoroughly review the impact on the economic value of existing shareholders. SK Hynix emphasized, "The criteria for judgment are clear," stating that "options involving the use of external capital must be sufficiently examined and judged by comparing them with options using internal funds to determine their impact on the economic value of existing shareholders."
SK Hynix stated, "If we proceed to review specific plans in the future, we will carefully examine financial and business impacts at the board level and faithfully comply with relevant regulations and procedures," adding, "We will also review and sufficiently explain the impact on existing shareholders and necessary shareholder protection measures."
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