Shares of South Korean chipmaker SK Hynix fell as much as 3% in Seoul on Friday morning after the company announced that it had halted its review of potential U.S. initial public offerings for its subsidiary Solidigm. SK Hynix made the decision after considering financial market conditions, semiconductor stock volatility and share-price trends, while maintaining Solidigm’s investment requirements. The subsidiary’s existing production capacity is limited relative to demand for AI memory, making new U.S. manufacturing capacity necessary, and SK Hynix is therefore exploring alternative financing options. The move comes as South Korea’s financial regulator examines whether a U.S. listing of Solidigm would comply with rules governing dual listings and the protection of minority shareholders. It also coincides with a decline in U.S. technology stocks, with the Nasdaq Composite losing 2.6%, Nvidia falling 4.4% and Advanced Micro Devices dropping 8.1%.
Source: Read the original article
