SK Hynix has canceled the planned U.S. IPO of Solidigm, its California-based NAND flash-memory subsidiary. In a regulatory filing, the South Korean chipmaker cited increased financial market volatility and a recent downturn in semiconductor stocks.
The cancellation halts a key part of SK Hynix’s plan to raise capital after it acquired Solidigm from Intel for $9 billion in 2021. The IPO plan had also faced opposition from SK Hynix shareholders, who raised concerns about dilution of their holdings and a potential valuation discount.
SK Hynix said it will reconsider its options when market conditions become more favorable.