SK hynix Inc. said Friday it has halted a review of a pre-IPO fundraising round and a U.S. initial public offering for Solidigm, its NAND flash and solid-state drive subsidiary, citing overall capital-market conditions^2,3.

Reports had circulated that Solidigm was considering a U.S. listing as early as next year that could value the unit at up to $150 billion^2,3. CNBC said SK Hynix shares fell as much as 3% in Seoul after the halt¹.

The chipmaker said its commitment to investing in Solidigm's growth is unchanged and that it will keep exploring other options to enhance shareholder value^2,3. A company official, speaking without being named, said the choice was made from the perspective of shareholder value and current market conditions, and that tighter duplicate-listing rules were not the direct reason^2,3.

Yonhap reported the halt amid shareholder opposition and regulatory scrutiny that a separate listing could hurt minority shareholders³. South Korean regulators have said the offering could amount to a duplicate listing that dilutes existing stakes^2,3. Solidigm sits under a chain from SK Inc. through SK Square Co. to SK hynix, a structure that has raised holding-company discount concerns^2,3.

Earlier this week, Financial Supervisory Service Governor Lee Chan-jin said both the Financial Services Commission and his agency viewed Solidigm as subject to duplicate-listing restrictions^2,3.

Yonhap said semiconductor stocks have corrected and that Sandisk Corp. shares have fallen about 40 percent from a June peak, prompting questions about whether Solidigm could reach the valuation once discussed^2,3.

SK hynix had weighed an IPO as a way to raise outside capital for new U.S. production capacity tied to rising memory demand for artificial intelligence, and had also considered direct investment^2,3. The company had said a listing could improve consolidated cash flow for plant spending and shareholder returns such as dividends and buybacks^2,3.

Solidigm, based in California, is a second-tier SK hynix subsidiary formed in 2021 after SK hynix acquired Intel Corp.'s NAND flash and SSD business^2,3.