South Korean memory giant SK Hynix Inc.‘s U.S. subsidiary Solidigm is reportedly exploring an initial public offering (IPO) as early as next year, one that could value the NAND flash and storage unit at up to $150 billion.
Banks Court a Potential Record-Setting Listing
Solidigm met with investment banks this week in a competitive “bake-off” for IPO roles, Reuters reported Friday, citing people with knowledge of the matter.
The meetings could pave the way for the largest U.S. semiconductor listing on record. The offering could raise as much as $15 billion, although the size and timing of the deal remain uncertain and could change depending on market conditions, the report added.
SK Hynix said to the news outlet that Solidigm “is reviewing various options to strengthen its business competitiveness,” but confirmed no formal plans.
SK Hynix and Solidigm did not immediately respond to Benzinga‘s request for comment.
AI Storage Demand Fuels Valuation Ambitions
This confidence likely stems largely from where Solidigm sits in the AI supply chain.
Based in Rancho Cordova, California, the company produces enterprise SSDs for servers and data centers, focusing on the growing demand for AI-powered storage. SK Hynix created the unit in 2021 after acquiring Intel Corp. (NASDAQ:INTC)’s NAND business for about $9 billion.
If the company reaches a $150 billion valuation, it would be far larger than recent chip market debuts. Arm Holdings (NASDAQ:ARM) was valued at $54 billion in 2023, while Cerebras Systems (NASDAQ:CBRS) had a $56 billion valuation when it listed earlier this year.
Benzinga’s Take: The figures highlight the growing investor interest in companies involved in AI infrastructure.
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