SK Hynix's U.S. subsidiary Solidigm has closed its Korean branch. The move is part of global operational efficiency initiatives as conditions in the memory semiconductor market worsen.

Industry sources reported on September 8 that Solidigm was closing its smaller global branches and as part of this process, the Korean branch has been closed.

Solidigm, which was known as Intel's NAND flash memory business unit before being acquired by SK Hynix in 2021, reportedly has a small number of employees at its South Korean branch.

Solidigm has been facing operational challenges following the SK Hynix acquisition and the market downturn. The net loss of U.S. NAND companies (NAND Product Solutions Group) including Solidigm in the first half of this year was 2.2423 trillion won, a significant increase compared with 258.3 billion won in the same period last year.

In response to these challenges, Solidigm laid off 98 employees, or about 10% of its workforce, in July at its headquarters in Rancho Cordova, California.

A representative of SK hynix said: "As Solidigm headquarters is implementing operational efficiency measures, branches in some regions, including South Korea, have been closed. Future domestic business will be conducted through our headquarters or dealers."

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