The new packaging fabrication and research and development facility is intended for high-intensity and artificial intelligence-based microelectronic products and applications in the region
SK hynix to build advanced semiconductor packaging plant in Indiana. (Credit: SK HYNIX INC.)
South Korean chip manufacturer SK hynix has agreed to invest more than $3.87bn to construct an advanced chip packaging facility in West Lafayette, Indiana, US.
The new packaging fabrication and research and development (R&D) facility is intended for high-intensity and artificial intelligence (AI)-based microelectronic products and applications in the region.
The 430,000ft2 plant will spread across 90 acres at the Purdue Research Park to support the demand for semiconductors in the US.
SK hynix’s site will incorporate an advanced semiconductor packaging production line that will next-generation high-bandwidth memory (HBM).
The facility will also manufacture dynamic random access memory (DRAM) chips, which are key components of graphic processing units.
Additionally, it will support the development of future generations of chips apart from accommodating an advanced packaging R&D line.
The site is expected to begin mass production in the latter half of 2028, bringing around 800 new jobs by the end of this decade.
Additionally, the chip manufacturing company intends to engage with Purdue University on plans for future R&D projects.
SK hynix CEO Kwak Noh-Jung said: “We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States that will help strengthen supply-chain resilience and develop a local semiconductor ecosystem.
“With this new facility, we hope to advance our goal of providing AI memory chips with unmatched capabilities, serving the needs of our customers.”
The South Korean firm said that the location of the chip packaging facility was selected based on Purdue University’s talent pipeline, Indiana’s industrial infrastructure, and the state and local government’s support.
Indiana Governor Eric Holcomb said: “This new semiconductor innovation and packaging plant not only reaffirms the state’s role in the hard tech sector, but is also another tremendous step forward in advancing US innovation and national security, putting Hoosiers at the forefront of national and global advancements.”
According to the Indiana government, since 2022, eight companies have committed to invest over $6bn in semiconductor production plants in the state.