Why SK Hynix pulled the plug on $10 billion US IPO for Solidigm

By the Editorial Team · Monday, October 26, 2026

SK Hynix has canceled the planned $10 billion IPO of its Solidigm unit in the U.S. due to regulatory objections from South Korean authorities and unfavorable market conditions. This decision highlights increased regulatory scrutiny aimed at protecting minority shareholders and reflects broader challenges in tech IPOs amid market uncertainty.

South Korean chipmaker SK Hynix Inc. has abandoned plans for an initial public offering (IPO) of its Solidigm unit in the United States, citing regulatory opposition and challenging market conditions. The potential $10 billion listing was called off following heightened scrutiny from South Korean regulators and concerns among shareholders, according to a filing submitted by the company on Friday.

Solidigm, a leading manufacturer of flash memory used in data centers, had been preparing for the IPO, engaging major investment banks including Goldman Sachs Group Inc. and Morgan Stanley. The listing was expected to take place as early as next year and potentially value Solidigm at up to $100 billion. However, regulatory authorities in Seoul raised issues over the listing’s potential to dilute the value of minority shareholders and complicate the group’s ownership structure. These concerns aligned with broader efforts by South Korea to enhance corporate governance and strengthen protections for minority investors, a response to the persistent problem known as the “Korea discount,” where domestic stocks often trade below their intrinsic value.

The withdrawal also reflects an ongoing trend of high-profile IPO cancellations amid market uncertainty surrounding the AI sector. Other firms, including data center developers Firmaus Grid Ltd. and AirTrunk, have recently postponed or shelved IPO plans amid investor caution around tech valuations.

Ryan Albert, founder and managing member of Terton Capital, described the decision as “a major positive for Korean corporate governance,” viewing the regulatory stance as a sign of improved oversight. Following the announcement, SK Hynix’s shares rebounded, recovering from a roughly 60 percent decline since their peak in June. The earlier share drop had been driven by concerns over slowing demand in the memory chip industry and fears about share dilution tied to the proposed IPO.

SK Hynix completed a separate significant listing in July with a $26.5 billion offering in the United States, marking the largest-ever US IPO by a foreign company. Its decision to halt Solidigm’s IPO underscores the complex balance firms face between securing capital and navigating regulatory frameworks amid volatile trading conditions and evolving corporate governance standards.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.