SK Hynix breaks ground on $4 billion Indiana chip facility

Investing.com -- SK Hynix Inc. broke ground Thursday on its advanced memory packaging facility in West Lafayette, Indiana, representing the company's first high-bandwidth memory packaging base in the United States.

The South Korean chipmaker plans to invest more than $4 billion in the 133.5-acre site. The cleanroom is scheduled to open by October 2028, with mass production of next-generation HBM set to start in the second half of 2029, Chief Executive Officer Kwak Noh-Jung said at the ceremony.

The facility will employ about 1,000 people when fully operational, Kwak said. The project is expected to generate approximately 7,000 direct and indirect jobs through construction, operations and related industries.

The Indiana project receives support through the US Chips and Science Act, signed by President Joe Biden in 2022. SK Hynix will receive up to $458 million in direct funding and up to $500 million in loans under the program.

"We will expand our investments and collaboration in the US, grow together, and become the most trusted partner in shaping the future of AI in America," Kwak said at the event.

Wafers produced by SK Hynix in South Korea will be shipped to Indiana for packaging and testing before delivery to US customers, the company said. SK Hynix is evaluating more than 100 companies to supply materials, components and equipment for the facility.

High-bandwidth memory serves as a required component for Nvidia Corp.'s advanced AI acceleration systems. SK Hynix currently ranks as South Korea's second most valuable company, behind Samsung Electronics Co.

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