An IPO of SK Hynix's Solidigm would add to the multiple layers of ownership within the group, deepening the pyramid ownership structure, according to the Korea Corporate Governance Forum.
(Sept 28): SK Hynix Inc shares fell on Monday as media reports of a potential listing of the chipmaker's US subsidiary added to concerns over its complex ownership structure.
SK Hynix shares dropped 5%, the most in two weeks, after Bloomberg confirmed over the weekend that Solidigm is considering a US initial public offering (IPO) as soon as next year that could value the data-storage product maker at as much as US$100 billion ($128 billion). SK Hynix's biggest holder SK Square Co tumbled more than 8%, while SK Inc, which controls SK Square, retreated more than 6%.
An IPO of Solidigm would add to the multiple layers of ownership within the group, deepening the pyramid ownership structure, according to the Korea Corporate Governance Forum, a non-profit of investment professionals, which in August urged SK Hynix to drop the plan. SK Hynix owns the NAND memory unit through US subsidiary AI Company, making Solidigm a so-called grandchild company.
"I would be watchful rather than alarmed," said Jung In Yun, the chief executive officer of Fibonacci Asset Management Global. "A US listing could unlock Solidigm's value and fund expansion, but SK Hynix shareholders would be giving up a portion of its future earnings."
"The key is the valuation and the use of proceeds," Yun said. "Selling a small stake at an attractive price could create value, while substantial dilution without a convincing investment return would be a concern."
Shares of SK Hynix and other chipmakers, including Samsung Electronics Co, also came under pressure from broader risk-off mood after oil prices rose.
Micron (MU) Comparison With Solidigm :
Micron and Solidigm compete heavily in the enterprise and data-center solid-state drive (SSD) market, especially for high-capacity cloud and artificial intelligence (AI) workloads.
Core Technology and Strategy
• Micron: Focuses heavily on high-density Triple-Level Cell (TLC) NAND technology (such as the Micron 6550 ION and 9550 series), aiming to beat competitors on power efficiency and random read performance while maintaining competitive pricing against high-capacity drives.
• Solidigm: (A subsidiary of SK Hynix formed from Intel's NAND business) specializes in ultra-high-density Quad-Level Cell (QLC) enterprise SSDs (such as the D5-P5336 series), offering massive capacity scaling up to 122.88 TB for read-intensive cloud and AI data architectures.
Performance & Efficiency Comparison
• Capacity and Density: Solidigm often leads in maximum raw density per single drive (e.g., 122.88 TB QLC drives), whereas Micron pushes high-performance TLC alternatives (like the 61.44 TB Micron 6550 ION) that balance raw density with faster mixed-workload endurance and throughput.
• Power and Workloads: According to benchmark and validation tests from industry publications like StorageReview, Micron's recent high-capacity ION drives are optimized for superior input/output operations per second (IOPS) per watt and lower active power states, whereas Solidigm excels in read-dominant, massive sequential cloud storage TCO (Total Cost of Ownership) scaling.
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