South Korean chip manufacturer SK Hynix is planning to invest around $4 billion to build an advanced chip packaging facility in West Lafayette, Indiana.
The decision to build the facility in Indiana was first reported at the beginning of February however, the Wall Street Journal today revealed the scale of the financial investment and the city that will house the plant.
The plant will reportedly specialize in stacking standard dynamic random access memory chips to create high bandwidth memory (HBM) ones, before they are integrated with Nvidia’s GPUs.
Citing people familiar with the matter, the WSJ said the facility is expected to begin operations in 2028 and add 800 to 1,000 jobs to the area. A number of financial support packages, including state and federal tax incentives are expected to be made available to SK Hynix.
In 2022, SK Group Chairman Chey Tae-won met with Joe Biden and pledged that the company would invest $22 billion in US-based semiconductor, green energy, and bioscience projects.
Earlier this month, the US government awarded Intel $8.5 billion in direct funding under the CHIPS and Science Act to support the company’s investments in Arizona, New Mexico, Ohio, and Oregon where the company is expanding its chipmaking facilities.
In February 2024, GlobalFoundries was awarded $1.5 billion by the US government under the act to subsidize the company’s future semiconductor production capabilities and support expansion plans for its New York and Vermont sites.
