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SK hynix (Indiana)
Key Facts
Project Summary
The U.S. Department of Commerce awarded SK hynix up to $458 million in direct funding under the CHIPS and Science Act to establish a high-bandwidth memory (HBM) advanced packaging fabrication and research and development (R&D) facility. This funding will support and build upon SK hynix’s investment of approximately $3.87 billion in West Lafayette, Indiana, to build a memory packaging plant for artificial intelligence (AI) products and an advanced packaging R&D facility.
Economic and National Security Impact
This investment in SK hynix, the world’s leading producer of HBM, represents a significant step in advancing the security of the U.S. AI supply chain because AI is driving the growth and demand for HBM capacity, which has historically been in low supply and is one of the core AI supply chain constraints.
SK hynix’s West Lafayette facility at the Purdue University Research Park will be home to an advanced semiconductor packaging line that will mass-produce next generation HBM, the highest performance memory chips, that are crucial components of Graphics Processing Units (GPUs) that train AI systems. HBM is important to AI training because of its processing power; and the next generation chips that will be mass-produced at the West Lafayette facility will boast a more advanced performance than the company’s latest HBM, which processes up to 1.18 terabytes of data – the equivalent of 230 full HD movies – per second. Mass production at the facility is expected to begin the second half of 2028.
This project, with its plans for a full R&D test bed and location right on the Purdue University Campus, solidifies a third sustainable semiconductor ecosystem. SK hynix will collaborate with Purdue University on R&D projects, which include working on advanced packaging, heterogenous integration, memory-centric solutions and architecture for generative AI – specifically memory design and in/near memory compute with Purdue’s Birck Nanotechnology Center and other research and institutes and industry partners.
SK hynix Project Overview | ||
|---|---|---|
Project Summary | Location(s) | West Lafayette, Indiana |
| Program | CHIPS Program Office | |
Financial Summary | Direct Funding | $458 million |
| Available Loan | $500 million | |
| Expected Capital Expenditure | $3.87 billion | |
Workforce Summary | Estimated Job Creation | Approximately 1,000 new facility jobs and hundreds of construction jobs |
| CHIPS Workforce Funding | $8 million | |
Facility Summary | Project Type | Construction of a HBM Back – end line & advanced packaging fabrication and R&D testbed facility |
| Technologies | Next generation HBM and advanced packaging fabrication | |
| Project Timeline | Mass production expected to begin second half of 2028 | |