[Edaily Reporter Kim Kyung-eun ] SK hynix(000660)is trading lower in early trading on the 23rd, despite news that it has withdrawn plans to list its U.S.-based NAND flash subsidiary, Solidigm. While concerns over shareholder value erosion due to a dual listing have eased, the sharp decline in U.S. semiconductor stocks and the burden of artificial intelligence (AI) investment costs are believed to be weighing on investor sentiment.

According to MP Doctor on the 23rd, as of 9:08 a.m. that day, SK hynix was trading at 1,181,000 won, down 42,000 won (3.43%) from the previous trading day.

This is interpreted as the result of continued selling pressure on U.S. semiconductor stocks, despite Solidigm’s withdrawal of its IPO. Overnight on the New York Stock Exchange, the Philadelphia Semiconductor Index plummeted 6.72%. Investor sentiment across the entire semiconductor sector weakened as concerns mounted over deteriorating cash flow resulting from Meta’s massive AI investments.

Solidigm’s withdrawal of its IPO is seen as a factor that could alleviate concerns about a discount to the company’s value resulting from dual listings. On the other hand, some point out that as opportunities to raise external capital diminish, the investment funds SK hynix will have to bear directly in the future may increase.

Yang Hyun-kyung, an analyst at iM Securities, stated, “The news of Solidigm’s withdrawal from its U.S. IPO is a factor that could alleviate concerns regarding SK hynix’s dual listing,” adding, “Since this decision acknowledges concerns about the erosion of shareholder value, wariness regarding the discount and equity dilution resulting from a dual listing may be eased.” She further noted, “There is also a possibility that opportunities to raise external capital will diminish, and the burden of investment funding will increase in the future.”

Earlier that day, SK hynix announced in a pre-market disclosure, “Our overseas subsidiary, Solidym, has been reviewing various funding options to expand production capacity and strengthen competitiveness; however, after comprehensively considering capital market conditions and other factors, it has decided to suspend its review of pre-IPO funding and an initial public offering (IPO).”

Meanwhile, SamsungElectronics(005930)is trading at 204,750 won, down 9,750 won (4.55%) from the previous close.