SK Hynix put its plans to float Solidigm on the stock market on hold.

Reports first surfaced in August that Hynix planned to take the memory chip maker public following its own $26.5 billion IPO in the US. Those reports, which suggested an initial valuation of Solidigm at $35.3 billion, saw local consternation that outside investors would reduce Hynix’s indirect Solidigm ownership stake and its overall corporate value.

A recent statement from Hynix read that it would pause its review of potential pre-IPO and IPO options, adding the decision “does not reflect any change in Solidigm’s growth prospects or investment needs.”

“Rather, in light of recent capital market conditions and share price trends, Solidigm determined that it was necessary to reassess whether an IPO would be the most beneficial option for SK Hynix and its existing shareholders at this time,” the Korean giant added.

Hynix explained that the IPO sought to resolve limited capacity at existing Solidigm production facilities in order to meet rising demand off the back of the ongoing AI infra buildout. As such, SK Hynix evaluated the IPO route alongside a direct investment in the US subsidiary, adding to its existing $10 billion investment in Solidigm as part of its AI Company (AI Co.) venture, announced in March.

In Hynix’s view, an appropriate valuation through an IPO would recognize Solidigm’s growth potential more “adequately” than SK Hynix’s existing corporate value.

Blaming “financial market volatility … contributing to a broader correction in semiconductor stocks,” Hynix said it would now continue to probe investment timing, scale, and financing methods while assessing alternate ways to support Solidigm’s build-out.

The decision puts an end to months of discussion around the IPO, while marking a new chapter in Solidigm’s storied path. Originally a non-volatile (NAND) and solid-state drive (SSD) business owned by Intel, Solidigm was acquired by SK Hynix for $9bn in 2020 and merged with Hynix’s own NAND operations.

The firm became further nestled in the Hynix fold when Richard Chin was appointed co-CEO in May. The former global sales SVP for SK Hynix’s America arm works alongside Xin Guo, who was promoted to the co-CEO role a few months prior.

Hynix's AI Co. plans, meanwhile, seem to have similarly stalled, with recent investments coming only from other arms of the SK Group family. March saw SK Innovation commit $380m to the project, while SK Telecom pledged approximately $480m in June, marking only two publicly announced investments in total since its initial launch.

SDxCentral, DCD's sister publication, has contacted SK Hynix for comment.