SK hynix reviews shareholder returns and Solidigm funding

SK hynix has addressed rumors regarding a massive 16 trillion won special dividend, stating that while the company is reviewing various shareholder return measures to enhance value, no specific plan has been finalized. The company is expected to announce its official position alongside its third-quarter earnings report on the 28th.

Separately, SK hynix's decision to halt the initial public offering (IPO) of its U.S.-based NAND flash subsidiary, Solidigm, has raised questions regarding future capital procurement. Solidigm requires significant funding, potentially up to $10 billion, to construct new NAND production facilities in the United States to meet rising demand for enterprise SSDs driven by AI data centers.

With the IPO withdrawn, potential financing scenarios include issuing corporate bonds, bank loans, or capital increases by the parent company, SK hynix. Solidigm is reportedly considering Upstate New York as a candidate site for a new fab, with local officials currently in negotiations to attract the facility.