SK Hynix's subsidiary Solidigm is considering an initial public offering in the United States as soon as 2027, according to new reports. The potential listing could value the US business at up to $150 billion, marking a significant step toward what could become the largest-ever US semiconductor listing.

The revised timeline pushes back from earlier indications of a listing as early as next year, reflecting ongoing strategic evaluations. The company could raise $15 billion in the IPO, sources said, speaking on condition of anonymity to discuss confidential matters. Plans, including deal size and timing, remain at an early stage and could change depending on market conditions.

Strategic positioning and market context

Solidigm held pitch meetings with investment banks competing for roles on the IPO, a process known as a "bake-off," marking a concrete step toward the listing. The subsidiary is based in Rancho Cordova, California, and operates as the US-based NAND flash memory and solid-state drive (SSD) arm of South Korea's SK Hynix Inc.

The listing would provide a standalone valuation for a business that has become a key part of SK Hynix's storage portfolio. It would also seek to tap strong investor demand for companies tied to artificial intelligence infrastructure, which has fuelled gains in semiconductor and hardware stocks.

What the numbers show

The proposed valuation of $150 billion against a potential raise of $15 billion implies that existing shareholders, primarily SK Hynix, would retain approximately 90% of the equity if the full amount is raised at the upper end of the valuation range. This structure suggests the primary objective may be establishing a public market benchmark for the storage division rather than immediate large-scale capital extraction by the parent company.

SK Hynix stated last month it was weighing steps to boost Solidigm's competitiveness. Solidigm declined to comment, while SK Hynix did not immediately respond to a request for comment.