SK hynix is reportedly weighing a public listing for Solidigm, its US-based subsidiary specializing in NAND memory and enterprise SSDs, in a deal that could value the company at up to $150 billion. According to sources cited by Reuters, the company could go public as early as 2027 and raise around $15 billion, though both the timeline and the size of the deal are still at an early stage and could change.
Solidigm’s key facts in 20 seconds
- Solidigm is weighing an initial public offering (IPO) for 2027.
- The valuation being discussed could reach $150 billion.
- The deal could raise around $15 billion.
- The subsidiary has already held talks with investment banks to prepare the deal.
- Its business focuses on enterprise SSDs and NAND storage for data centers and artificial intelligence.
Solidigm has already taken a concrete first step toward a possible listing. This week it held meetings with investment banks interested in taking part in the deal, a process known in financial circles as a “bake-off.” Reuters cites three people familiar with the plans, who spoke on condition of anonymity because the discussions are confidential.
Neither Solidigm nor SK hynix has publicly confirmed the deal. For now, it remains a process under evaluation rather than a final decision to go public. Market conditions could still alter the valuation, the amount raised, or even the planned timeline.
From the Intel acquisition to a potential mega-IPO
Solidigm was born as an independent subsidiary of SK hynix after the South Korean group acquired Intel’s NAND memory and SSD business for around $9 billion. The deal was announced in 2020, and the new company began operating as an independent subsidiary in late 2021.
The acquisition allowed SK hynix to strengthen its position in NAND, a memory technology used in both storage devices and servers and data centers. Solidigm also inherited Intel’s enterprise SSD capabilities and went on to develop products aimed at large-scale storage infrastructure.
That business has grown more important with the expansion of artificial intelligence. Data centers need to store huge volumes of data used to train and run models, and enterprise SSDs provide a storage layer between compute systems and other memory tiers.
SK hynix already views Solidigm as a piece of its AI infrastructure strategy. In January it announced a reorganization to create a US company focused on artificial intelligence solutions, using Solidigm’s corporate structure. The plan calls for up to $10 billion in funding for that new business and aims to expand beyond memory components into solutions for AI data centers.
The potential IPO should be read within that evolution. Solidigm would remain a company tied to SK hynix, but an independent listing would establish a specific valuation for its storage business.
A valuation that would top major chip IPOs
The $150 billion figure mentioned by Reuters’ sources would make the potential deal one of the largest listings in the semiconductor sector. Reuters compares that figure with the roughly $54 billion valuation at which Arm went public in 2023 and the roughly $56 billion fully diluted valuation attributed to Cerebras in its 2026 IPO.
But that $150 billion does not yet represent a market-set valuation. It is a figure floated by the sources consulted by Reuters within preliminary discussions about the deal.
The distinction matters because an IPO reveals how much the market is actually willing to pay for a company once shares start trading. In the meantime, estimates can shift depending on financial results, the outlook for the storage business, demand for AI infrastructure, and overall market conditions.
The potential size of the deal would also be substantial. Sources cited by Reuters point to roughly $15 billion being raised through the sale of shares. It has not yet been confirmed what percentage of Solidigm would be offered to the market or exactly how the deal would be structured.
Solidigm looks to grow through AI storage
The company is headquartered in Rancho Cordova, California, and specializes in NAND memory and enterprise SSDs. Its drives are used in servers, cloud infrastructure, and data centers.
Rising demand for artificial intelligence is also changing storage requirements. Models require huge volumes of data, and infrastructure needs to move information between storage, memory, and accelerators faster. Solidigm has directed part of its lineup toward high-capacity enterprise SSDs for these environments.
In its first-quarter 2026 results, SK hynix said it expected to leverage Solidigm’s high-capacity enterprise SSD capabilities to strengthen its position in AI data center and AI-ready computer markets. The company also pointed at the time to a mix of high-performance TLC and higher-capacity QLC products.
Capacity expansion could be another piece of the strategy. Reuters previously reported that Solidigm was exploring building a NAND memory plant in the United States, with upstate New York among the locations under consideration. That reported plant is likewise not yet a final investment decision.
The company is therefore weighing different paths to grow its business as SK hynix tries to capitalize on the growth of AI infrastructure. An IPO would also provide an independent benchmark for the value the market places on the storage business.
The process still has several steps ahead. Solidigm has begun talking with investment banks, but there is no confirmation that the deal will go through. Reuters notes that market conditions could still change the plans, including the timing of the listing and the size of the offering.
For SK hynix, the potential listing comes after several moves aimed at expanding its exposure to AI infrastructure. The company is increasing its investment in HBM memory, developing storage solutions for data centers, and building new AI-related businesses. Solidigm occupies a specific position within that strategy by focusing on NAND and enterprise SSDs.
Frequently asked questions
What is Solidigm?
Solidigm is SK hynix’s US-based subsidiary specializing in NAND memory and SSDs, particularly for enterprises, servers, the cloud, and data centers. It emerged after SK hynix acquired Intel’s NAND and SSD business.
When could Solidigm go public?
Sources cited by Reuters point to a possible initial public offering in 2027. The timeline is not yet set and could change depending on market conditions.
How much could Solidigm be worth?
Sources consulted by Reuters put a potential valuation of up to $150 billion. That figure reflects a preliminary stage of talks, not a final valuation set through a listing.
How much money could the IPO raise?
Reuters reports that Solidigm could aim to raise around $15 billion. The final size of the offering has not yet been decided.
