Solidigm weighs IPO that could value SK Hynix unit at up to $150 billion

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Solidigm IPO could hit $150B

Highlights

Solidigm is considering an IPO as soon as next year that could value the SK Hynix unit at up to $150 billion, according to sources.
SK Hynix combined its $9 billion acquisition of Intel's NAND and SSD business into Solidigm, which now targets AI-driven demand for enterprise storage hardware.
Solidigm may seek a pre-IPO fundraising round of about 5 trillion won ($3.6 billion), and its potential valuation would far surpass Arm Holdings’ $54 billion at IPO.

IPO planning and valuation backdrop

As first reported by Reuters, Solidigm this week holds pitch meetings with investment banks competing for roles on the offering, in a process known as a bake-off. Four people familiar with the matter say the discussions mark a concrete step toward a listing, although the timing, valuation and deal size remain subject to market conditions.

The company could pursue the IPO as early as next year, according to three of the people. At a valuation of up to $150 billion, the flotation would rank among the biggest semiconductor listings on record and would give investors a standalone value for a business that has become a central part of SK Hynix's storage portfolio.

Solidigm, based in Rancho Cordova, California, declined to comment. SK Hynix does not immediately respond to a request for comment.

AI storage demand supports strategic case

Solidigm is the U.S.-based NAND flash memory and solid-state drive subsidiary of South Korea's SK Hynix. SK Hynix buys Intel's NAND memory and SSD business for about $9 billion in a deal announced in 2020, then combines those operations with Solidigm after launching the unit as a standalone subsidiary in 2021.

The business supplies enterprise SSDs used in servers, cloud infrastructure and data centers, and it has sought to differentiate itself with high-capacity storage products designed for AI applications. That positioning comes as rising data volumes and investment in AI systems continue to lift demand for advanced storage hardware.

Last month, SK Hynix says it is considering measures to strengthen Solidigm's competitiveness after media reports that the unit is exploring a pre-IPO fundraising round of about 5 trillion won, or $3.6 billion. A $150 billion valuation would stand well above recent semiconductor IPO benchmarks, including Arm Holdings' roughly $54 billion valuation at its 2023 debut and Cerebras Systems' approximately $56 billion fully diluted valuation in its 2026 IPO.

In our earlier coverage of DayOne’s planned IPO timeline, we noted that data center listings are entering a more selective market where investors want clearer visibility on power access, diversified customers, and predictable cash flow. We explained that DayOne was preparing to file with the SEC and target a near-term listing, with valuation and fundraising expectations framed by tighter scrutiny and higher financing costs.

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