SK Hynix CEO Kwak No-jeong said that the company plans to halt its review of an initial public offering for its grand-subsidiary Solidigm, while pursuing investment funding in a manner that enhances corporate and shareholder value. The company decided to return the Kioxia investment gains realized this year to shareholders through special dividends.
Speaking at the Q3 2026 earnings release on Wednesday, Kwak stated, "Solidigm will continue to strengthen its competitiveness in the AI data center storage market and secure growth opportunities." He added, "We will pursue investment and funding plans for this purpose in a direction that aligns with enhancing the corporate value and shareholder value of both Solidigm and SK Hynix."
He explained, "Solidigm has been reviewing ways to secure funds necessary for growth investments, such as expanding new production facilities to meet increasing demand." He noted, "Among these options, we had expected that utilizing external capital through an IPO (initial public offering) would alleviate our investment burden and expand the capacity for shareholder returns."
He stated, "However, after comprehensively considering recent financial market volatility and stock price adjustments in the semiconductor industry, we determined that it is difficult to fully achieve the originally expected effects through an IPO at this time." He revealed, "Accordingly, we have decided to halt the review of a pre-IPO and IPO."
Kwak also emphasized the principle of pursuing growth investments alongside shareholder returns. He said, "We have always taken as our principle sharing the majority of the fruits of strategic investments with you, our shareholders." He added, "In order to protect your interests while continuing to make bolder investments for sustainable growth, we will fill any temporary reduction in the capacity for shareholder returns during the process of preparing for the future with those results."
He continued, "In line with this principle, we intend to return the Kioxia investment gains realized this year to you, our shareholders, through special dividends." He stated, "We will continue to uphold this principle without change and ensure that you can directly feel the results of strategic investments going forward."
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