Global major investors are flocking to the USD 5 billion (approximately KRW 6.792 trillion) pre-IPO (pre-listing equity investment) being pursued by Solidigm, SK hynix’s U.S. NAND subsidiary. With global “big players” such as U.S.-based Blackstone reviewing participation, SK hynix plans to finalize the investor lineup next month after detailed negotiations.

Market observers interpret the strong interest as stemming from the scarcity of large-scale investment opportunities capable of deploying multi-trillion-won capital in the high-growth semiconductor sector. In addition, as AI data center investment expands, the growth driver in the memory market is shifting from high bandwidth memory (HBM) to enterprise solid-state drives (eSSD). According to TrendForce, in fact, sales of the global top five eSSD companies in the second quarter of this year (April–June) surged 103.6% quarter-on-quarter to USD 37.59 billion (approximately KRW 51.0773 trillion).

The company’s attractive valuation is also a key point of interest. In this pre-IPO, Solidigm’s corporate value is understood to have been assessed using a price-to-earnings multiple similar to that of Japan’s Kioxia.

Investors judge that even with the same multiple applied, Solidigm has much greater future growth potential. The driver is Solidigm’s leadership in quad-level cell (QLC) technology. QLC is a technology that stores 4 bits in a single memory cell, increasing storage density per unit area by more than 30% compared with existing triple-level cell (TLC, 3 bits), and thereby significantly lowering production cost per unit. Leveraging its large-capacity QLC technology, Solidigm is targeting the high-capacity storage device market for AI data centers by commercializing 30TB (terabyte) and 60TB-and-above data center eSSDs. Analysts say that due to the high entry barriers, it is difficult for competitors to catch up, allowing Solidigm to maintain market leadership and high margins over an extended period.

A clear path to investment recovery is also cited as an attraction. Following this round of capital raising, Solidigm plans to pursue a listing on Nasdaq in the United States. The existence of an IPO as a definite exit channel is drawing the attention of large investors. Major Korean securities firms and other domestic investors are also reported to be exploring participation in Solidigm’s pre-IPO. However, as the company is currently prioritizing foreign investors, it remains uncertain whether domestic investors will have an opportunity to participate.

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