The statement appears aimed at calming growing investor concerns that a potential U.S. listing of Solidigm could dilute shareholder value through an overlapping listing.
Solidigm was launched as part of SK hynix’s 2020 acquisition of Intel’s NAND flash and solid-state drive (SSD) business. Solidigm now primarily produces high-capacity enterprise SSDs (eSSD) used to store vast amounts of data at AI data centers.
SK hynix is weighing investments to expand Solidigm’s production capacity and sharpen its technological edge as market conditions and demand shift.
While SK hynix has the financial capacity to fund the investment with its own cash, the company has reserved specific judgment on the matter due to investment needs elsewhere.
The SK hynix logo is seen on one of its products during the 26th Semiconductor Exhibition held in Seoul on Oct. 23, 2024.REUTERS/YONHAP
“SK hynix currently maintains a strong financial position, and various capital utilization options, including the use of internal funds, can be considered,” the chipmaker said. “However, having sufficient capital does not automatically mean that using internal cash for all investments is the optimal choice.”
SK hynix must spread its capital across businesses such as high-bandwidth memory (HBM), server dynamic random-access memory and eSSDs. This landscape puts Solidigm’s funding needs up against other demands on the company’s capital.
The Korean chipmaker also underscored the importance of market cycles and investment timing in the memory industry, where large amounts of capital are at stake. SK hynix said outside funding remains an option, but it will compare the impact on existing shareholders with that of funding the investment itself. The decision will factor in the merits and financial burden of each financing method.
"SK hynix will prioritize long-term corporate and shareholder value as the primary criterion for any option considered,” the company said.
Once a concrete plan is on the table, the board will examine its financial and business implications and carry out the required procedures. The company said it will also review measures to protect existing shareholders and explain the potential impact in detail.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
