The report said that SK SK hynix abandoned Solidigm’s plan to go to the U.S. for IPO, and analysts believe this may ease future NAND supply pressure.
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SK SK hynix abandons Solidigm’s U.S.IPO, Micron and SanDisk may benefit from NAND, easing supply pressure
BlockBeats reports that October 24, according to a report by LYNX Equity Strategies analysts,SK SK hynix has abandoned its subsidiary Solidigm’s plan to go to the U.S. for IPO financing, meaning that its originally planned path of expanding U.S.NAND flash memory capacity through an IPO has been blocked. Analysts believe that if the relevant expansion plan were implemented, it could increase global supply and suppress industry pricing in 3 years or longer; now that this potential risk has receded, it represents a material benefit for Micron and SanDisk.
Analysts also pointed out that this change mainly affects medium- to long-term supply expectations and has not immediately changed the current market supply-demand balance. The relevant companies’ share-price performance remains affected by the overall market environment. Intel, meanwhile, faces a slight negative impact because its Ohio campus may lose a potential manufacturing project. On Friday, Micron closed up 2.46%, while SanDisk closed down 1.82%.
Original link https://m.theblockbeats.info/flash/373476
Key points
01
BlockBeats says that October 24, according to LYNX Equity Strategies analysts’ report,SK SK hynix has abandoned its subsidiary Solidigm’s plan to go to the U.S. for IPO financing.
02
The report says that the originally planned path of expanding U.S.NAND flash memory capacity through IPO financing has been blocked.
03
Analysts believe that if the relevant expansion plan were implemented, it could increase global supply and suppress industry pricing in 3 years or longer.
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Analysts believe that the receding potential risk represents a material benefit for Micron and SanDisk.
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Analysts pointed out that this change mainly affects medium- to long-term supply expectations and has not immediately changed the current market supply-demand balance.
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The report says that Intel faces a slight negative impact because its Ohio campus may lose a potential manufacturing project.
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On Friday, Micron closed up 2.46%, while SanDisk closed down 1.82%。
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This news discusses future NAND flash memory supply, not an immediate reduction in current supply. The analysts’ logic is that if Solidigm cannot expand capacity through U.S.IPO financing, future additional capacity may be lower, so the risk that industry prices will be suppressed by additional supply may decrease. However, this is only a judgment about medium- to long-term supply.
Why it matters to readers
NAND Supply expectations affect judgments about industry pricing. Analysts believe that the reduced risk of potential capacity expansion may benefit Micron and SanDisk; however, the report clearly states that the current market supply-demand balance has not immediately changed and that share prices remain affected by the overall market environment.
Beginners should distinguish between the report that “the company has abandoned IPO” and the claim that “prices will definitely rise in the future.” The latter is an analyst forecast, and Micron rose while SanDisk fell that day, showing that market performance was not consistent.
Risks and unknowns
The original text did not provide a direct announcement from SK SK hynix or Solidigm, so the official status of abandoning IPO cannot be confirmed from this evidence.
Whether Solidigm’s U.S.NAND capacity expansion plan has been canceled, delayed, or changed to another financing method is not stated in the original text.
Whether future global NAND supply and industry pricing will change as analysts expect remains unconfirmed.
Related Developments
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Whether Intel’s Ohio campus will lose the relevant manufacturing project is described in the original text only as “possible.”
The report does not specify the exact date corresponding to Friday.
Related concepts
IPO
This term is not in the glossary yet. Browse related concepts in the glossary.
