SK hynix: "No Decision Yet on Solidigm Investment Funding... Shareholder Value Comes First if Using External Capital"

Statement Made in Response to Shareholder Value Concerns
Emphasizes Efficiency of Capital Structure,
Promises Board Oversight and Measures to Protect Shareholder Interests

On October 1, SK hynix addressed the financing plans for its U.S. subsidiary Solidigm, stating that even though the company has sufficient financial capacity, it is not always the best option to fund all investments solely with internal resources. Nevertheless, SK hynix emphasized, "When utilizing external capital, the top priority will be enhancing long-term shareholder value."

SK hynix made this announcement through its news room as concerns emerged in the market over the possible initial public offering of Solidigm and resulting potential harm to shareholder value. Recently, as the possibility of Solidigm pursuing a listing became known among the investment community and certain market observers, worries were raised about so-called 'dual listing' and the ensuing impact on the value of existing SK hynix shareholders.

SK hynix explained that since the launch of Solidigm—created through the acquisition of Intel's NAND and solid-state drive (SSD) business—the company has shown rapid growth, especially in high-capacity enterprise SSDs for artificial intelligence (AI) data centers. In light of this, ongoing investments in expanding production capacity and enhancing technological capabilities are necessary. The company reiterated its stance, saying, "We are reviewing a range of options to strengthen Solidigm's competitiveness; however, nothing has been concretely decided at this point."

SK hynix further specified that it currently has ample financial capacity and can consider a variety of funding strategies, including using its own funds. However, the company clarified, "Having available capital does not necessarily mean that using only internal funding is the optimal solution for all investments." The company indicated that optimal resource allocation should be determined by comprehensively considering large-scale investment needs across various business domains, such as high-bandwidth memory (HBM), server DRAM, and high-capacity enterprise SSDs (eSSD).

Especially since the memory semiconductor industry is capital-intensive and both business cycles and investment timing are critical to competitiveness, the company explained that a comprehensive comparative analysis is needed to determine whether internal funding or external capital is more advantageous under its financial circumstances and prevailing market conditions.

SK hynix affirmed that it would review the market situation, investment timing, and the company’s financial status comprehensively, making it clear that "the basis for every decision is long-term shareholder value." The company plans to rigorously analyze and compare the impact on the economic value of existing shareholders when considering the use of external capital versus internal funding.

The company added, "Should we review concrete plans moving forward, the board of directors will scrutinize financial and business impacts and faithfully implement relevant regulations and procedures." It further noted, "We will also review and thoroughly communicate any effects on existing shareholders and the necessary measures to protect shareholder interests."

The headquarters of SK hynix in Icheon, Gyeonggi Province. Photo by Yonhap News Agency

This content was produced with the assistance of AI translation services.