[News] SK hynix’s U.S. NAND Unit Solidigm Reportedly Eyes Nasdaq — But Debt and Aging Fabs Cloud the Path
SK hynix’s Nasdaq debut through American depositary receipts (ADRs) on July 10 may be just the beginning of its U.S. capital market expansion. According to Chosun Biz, the memory giant is exploring fundraising options to scale up its U.S. NAND subsidiary Solidigm, including a 5 trillion–10 trillion won pre-IPO ahead of a potential Nasdaq listing.
Industry sources cited by Chosun Biz said Solidigm is seeking investment interest from global alternative asset managers and sovereign wealth funds, with Morgan Stanley and Goldman Sachs among the potential lead managers. IPO speculation has also intensified after the company reportedly began recruiting an executive to oversee SEC filings and external financial reporting.
SK hynix, however, said in a clarification filing that Solidigm is reviewing various options to strengthen its competitiveness, but no specific plans have been finalized, Green Economy News reports, adding that the company is expected to provide an update once details are confirmed or by September 4, in accordance with disclosure requirements.
Solidigm’s potential IPO comes at a favorable time, with AI infrastructure and inference workloads driving strong demand for high-capacity storage. According to TrendForce, SK hynix Group — including SK hynix and Solidigm — ranked second in 1Q26 NAND revenue with about $7.53 billion, up 44.6% quarter over quarter, capturing 17.6% of the global NAND Flash market share, behind Samsung’s 31.6%.
The company has strengthened its position in the high-capacity storage market, becoming the first to launch a 122TB-class QLC eSSD, Chosun Biz reports. It is now advancing next-generation NAND technology and developing 245TB-class enterprise SSDs — capable of storing around 50,000 movies — to meet the growing needs of AI data centers, according to Hankyung.
Solidigm’s Growth Comes With Lingering Challenges
SK hynix established Solidigm in the U.S. in 2021 to take over Intel’s NAND flash and SSD business after completing a roughly 10 trillion won acquisition in 2020. However, behind Solidigm’s recent turnaround lies a fragile financial foundation, as noted by Chosun Biz.
The company accumulated nearly 8 trillion won in net losses from 2021 to 2023, while its total equity fell to negative 906 billion won in the first half of 2024, resulting in complete capital erosion, according to Chosun Biz.
Although Solidigm returned to annual profitability in 2024 and recovered from capital erosion, its financial structure remains under pressure. The company’s debt ratio reached 4,484.6% last year — about 14 times above the generally accepted healthy level of below 200% — highlighting ongoing concerns over financial stability, the report adds.
Beyond balance-sheet issues, aging infrastructure remains another challenge. Solidigm’s Dalian fab in China, its only overseas production base, has been unable to receive advanced equipment such as EUV tools due to U.S. export restrictions, delaying planned upgrades and expansion, Chosun Biz reports.
Still, Solidigm is moving to address these capacity constraints as NAND demand recovers. A July News Tomato report suggested that the company plans to resume the long-delayed expansion of Dalian Plant 2 in the second half of 2026. According to Sisa Journal, the facility is expected to add a new V8 line based on 238-layer NAND technology. Meanwhile, Dalian Plant 1 is already undergoing line conversions toward 192-layer NAND and equipment upgrades to replace aging facilities, News Tomato reported.
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(Photo credit: Solidigm)
