Solidigm, the solid-state storage subsidiary under SK Hynix, is preparing for a US listing with a target valuation of up to $150 billion and plans to raise $15 billion, potentially setting a new record for US semiconductor IPOs.
The company's predecessor was Intel's NAND flash business, which Intel sold for approximately $8.85 billion — from a divested non-core asset to an AI storage star now valued at more than ten times that amount, Solidigm's transformation reflects how the current AI infrastructure investment boom has profoundly reshaped the storage sector.
According to three people familiar with the matter cited by Reuters, Solidigm held IPO underwriter bake-off presentations with multiple investment banks this week, marking a substantive step forward in the listing process.
The listing could be completed as early as next year, but the specific size and timetable remain at an early stage and will depend on market conditions. SK Hynix said in a statement that "Solidigm is evaluating various options to strengthen its business competitiveness, but no specific plans have been confirmed at this time."
If it lists at a $150 billion valuation, Solidigm would far surpass previous semiconductor IPO records — Arm Holdings (ARM Holdings) was valued at approximately $54 billion when it went public in 2023, and Cerebras Systems had a fully diluted valuation of about $56 billion at its 2026 IPO. For investors, this would be one of the largest and most closely watched semiconductor market entry opportunities in recent years.
From Intel's Discarded Asset to SK Hynix's Core Holding
Solidigm's creation stems from a strategic retrenchment by Intel.
In October 2020, Intel (INTC) announced the sale of its NAND flash and solid-state drive (SSD) business to South Korea's SK Hynix for a total price of approximately $8.85 billion. The deal was completed in two phases: the first phase concluded by the end of 2021, with SK Hynix acquiring Intel's SSD business and its NAND wafer fabrication plant in Dalian, China, for $6.61 billion, and renaming Intel's enterprise SSD business Solidigm, operating it as an independent subsidiary headquartered in California.
However, the first phase transferred only physical assets and SSD-related operations — Intel's NAND intellectual property, R&D infrastructure, and core technical personnel did not transfer along with it. It was not until March 2025 that the second phase of the transaction was finally completed — Intel (INTC) received a final payment of approximately $1.9 billion from SK Hynix, while SK Hynix formally obtained Intel's NAND-related intellectual property and R&D personnel, enabling the Solidigm team to collaborate more closely with SK Hynix on future products. At that point, the acquisition — which spanned nearly five years and totaled approximately $8.85 billion — was finally concluded.
The Solidigm brand name is derived from a combination of "solid" (solid-state storage) and "paradigm," signifying a paradigm shift in storage technology. The company is headquartered in Rancho Cordova, California, and focuses on enterprise SSD products serving the server, cloud infrastructure, and data center markets.
AI Storage Demand Explodes, Solidigm's Value Reassessed
The leap in Solidigm's valuation from the $8.85 billion acquisition price to a potential IPO valuation of $150 billion is driven primarily by the explosive demand for high-capacity storage from AI infrastructure buildout.
As the volume of data required for AI model training and inference continues to swell, data center demand for enterprise SSDs has surged significantly. Solidigm's strategic positioning is built precisely around this trend — the company is focused on developing high-capacity storage products for AI applications, entering this rapidly growing market with differentiated solutions.
The AI boom has continued to push up overall valuations of semiconductor and hardware stocks, providing a favorable market environment for Solidigm's listing window. Strong investor demand for AI infrastructure-related targets is an important prerequisite for Solidigm to seek a high valuation.
Frequent Moves Before Listing, Financing and Factory Building Advance on Two Fronts
Before formally launching the IPO process, Solidigm has been actively positioning itself on multiple fronts.
According to a Reuters report earlier this month, Solidigm is considering building a NAND flash chip factory in the United States, with upstate New York currently the primary candidate location, aimed at expanding manufacturing capacity. This plan aligns closely with the US policy direction of promoting domestic semiconductor production and also helps enhance the company's appeal in US capital markets.
Meanwhile, SK Hynix said last month that it is studying measures to enhance Solidigm's competitiveness, after media reports that Solidigm is exploring a pre-IPO financing round of approximately 5 trillion Korean won (about $3.6 billion). This series of moves indicates that SK Hynix is systematically paving the way for Solidigm's independent listing, comprehensively enhancing the subsidiary's independent operating capability and market valuation foundation by bringing in external capital, strengthening intellectual property integration, and expanding manufacturing footprint.
Record-Breaking IPO Tests Market Absorption Capacity
If Solidigm ultimately completes its listing at a $150 billion valuation with a $15 billion fundraising size, it would become the largest semiconductor IPO in US stock market history and one of the most important capital market events in the global tech stock market in recent years.
For reference, Arm Holdings (ARM Holdings) was valued at approximately $54 billion at its 2023 listing, and Cerebras Systems had a fully diluted valuation of about $56 billion at its 2026 IPO — Solidigm's target valuation is approximately 2.8 times and 2.7 times those figures, respectively. An offering of such magnitude poses a considerable test of the market's absorption capacity, and the final pricing will largely depend on whether AI infrastructure investment enthusiasm can be sustained at that time, as well as overall semiconductor sector market sentiment.
Currently, the specific size, timetable, and underwriter list for the IPO have not yet been determined, and Solidigm declined to comment. This listing plan, which could rewrite semiconductor IPO history, remains at an early preparatory stage.
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