SK Hynix, a South Korean chipmaker, announced on Friday that it has abandoned plans for an initial public offering (IPO) of its subsidiary Solidigm in the United States, causing its shares to fall as much as 3% in the Seoul market.

SK Hynix stated that Solidigm will suspend its review of potential IPO options after evaluating recent capital market conditions and stock price trends. This move comes amid increased volatility in financial markets and a general pullback in semiconductor stocks. Previously, South Korean financial regulators had indicated that Solidigm's listing in the U.S. might violate South Korean regulations restricting dual listings. SK Hynix emphasized that Solidigm's investment needs remain unchanged and it will continue to explore other financing options to support its growth and enhance shareholder value. This news comes as U.S. tech stocks face pressure from AI spending concerns, with the Nasdaq Composite Index falling 2.6% on Thursday, and chip stocks like NVIDIA and AMD also experiencing significant declines.