SEOUL, July 25 (Reuters) - South Korea's SK Hynix ( HXSCF )

is considering listing its U.S. subsidiary Solidigm

to raise funds to expand production facilities in response to an

upturn in memory chip demand, the Korea Economic Daily newspaper

reported on Thursday.

The U.S. subsidiary of the world's second-largest memory

chip maker produces enterprise solid-state drives (eSSDs) which

are facing rapidly growing demand as part of the artificial

intelligence boom, the newspaper reported.

SK Hynix's ( HXSCF ) sales of eSSDs rose 50% in the second quarter

from the previous quarter, the newspaper reported.

"Solidigm is exploring various options for growth, but no

decision has been made yet," SK Hynix ( HXSCF ) said in a statement.

SK Hynix ( HXSCF ) posted its highest quarterly profit since 2018 on

Thursday as the Nvidia ( NVDA ) supplier said strong AI chip

demand would only get stronger, adding that its sales of eSSDs

would grow four-fold this year.