SK Hynix is evaluating funding options for Solidigm (Intel's memory subsidiary) as HBM demand reshapes DRAM capacity allocations.

SK Hynix confirmed Thursday that it is reviewing financing alternatives for Solidigm, its U.S. subsidiary, but has not reached any decision. The Korean chipmaker emphasized that any funding move will be judged on its impact to existing shareholders and the group's long-term value.

The statement addresses a Reuters report from September 25 indicating that Solidigm is exploring a U.S. initial public offering as early as 2027. Such a listing could value the unit at up to $150 billion and raise as much as $15 billion. Solidigm had held preliminary talks with investment banks, though SK Hynix stressed that no concrete plans had been confirmed.

SK Hynix remains equally noncommittal on where it will build additional production capacity. In an SEC filing, the company said it is evaluating additional production sites, with no verdict yet on reports of a possible semiconductor plant in Japan. The company pledged to disclose specifics if a decision is confirmed, or within three months. Reuters reported on September 16 that SK Hynix was in talks with Intel over manufacturing memory chips in the United States, weighing options that included leasing part of an Intel facility in Ohio or forming a joint venture with Intel and cloud providers. SK Hynix clarified that no agreements on that front have been finalized.

Running beneath these corporate maneuvers is a structural shift in memory production. A Samsung Electronics executive projected to Reuters that high bandwidth memory will absorb close to 30 percent of DRAM makers' total wafer capacity next year, up from roughly 20 percent at present. That reallocation is pulling wafer resources toward more technically demanding architectures, a redistribution that chipmakers must now factor into their planning.

To strengthen its technology base, SK Hynix is leaning harder on outside developers. Its SK hynix Ventures arm, established roughly two weeks ago, is targeting partnerships with young technology firms working on semiconductor research and manufacturing processes, while also focusing on artificial intelligence infrastructure. Portfolio companies will be integrated into the group's internal development and manufacturing teams. At a TSMC conference in Santa Clara on September 23, SK Hynix presented development plans for its next-generation memory portfolio and received the Partner of the Year award for the second consecutive year.

DS Investment & Securities trimmed its price target for SK Hynix to KRW 2.64 million on Tuesday while retaining a buy rating, citing a weaker U.S. dollar–Korean won exchange rate and the transition to next-generation high bandwidth memory. The brokerage expects a recovery in the fourth quarter, underpinned by HBM4 growth and firming memory prices. Investors are also bracing for the expiration of the company's share buybacks around October 15 to 17, with market watchers anticipating that fresh shareholder-return programs could follow quarterly results. Shares closed Friday in Seoul at KRW 1,841,000, up 0.4 percent on the day and 183 percent year-to-date.