SK Hynix pauses Solidigm's IPO and pre-IPO financing evaluation
SK Hynix has paused its evaluation of a pre-IPO funding round and a US IPO for Solidigm, citing market volatility and a broad pullback in semiconductor stocks. SK Hynix said Solidigm's existing fab capacity can hardly meet AI-driven demand, and a new US wafer fab is still needed. SK Hynix's stock price has fallen about 30% this quarter, more than halving from its June high, while just 3 months ago the company raised $26.51 billion by issuing new shares to US investors on Nasdaq.
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WSJ: SK Hynix stopped reviewing both a pre-IPO round and a U.S. IPO for Solidigm, citing market volatility and a broader correction in semiconductor stocks.
The halt doesn’t remove the underlying problem, since SK Hynix says Solidigm’s existing plants have limited capacity for AI-driven demand and it still needs a new U.S. fab.
SK Hynix shares have fallen about 30% this quarter and more than half since their June record, just 3 months after the company raised $26.51B by selling new shares to U.S. investors on Nasdaq.