SK Hynix Reveals $3.8 bn Investment in Indiana for AI Chip Facility

SK Hynix, the world’s second-largest memory chip maker, announced on Wednesday its plans to invest approximately $3.87 billion in establishing an advanced packaging plant and research and development facility for AI products in Indiana, USA.
SK Hynix chip investment in NANDThe new facility, set to be located in West Lafayette, Indiana, will feature an advanced chip production line dedicated to mass-producing next-generation High Bandwidth Memory (HBM) chips. These chips are crucial components used in graphic processing units essential for training artificial intelligence systems, with Nvidia being one of the prominent consumers.

SK Hynix’s new facility will house an advanced semiconductor production line geared towards mass-producing HBM and Dynamic Random Access Memory (DRAM) chips, vital components for AI systems such as ChatGPT.

SK Hynix in a news statement said it plans to start mass production in the latter half of 2028. Alongside chip production, the facility will house a packaging research and development line, emphasizing SK Hynix’s commitment to innovation and technological advancement.

According to CEO Kwak Noh-Jung, the establishment of this facility will not only bolster the resilience of the supply chain for AI chips in the United States but also contribute to the advancement of semiconductor technology on a global scale.

The decision to invest in Indiana was influenced by various factors, including the availability of engineering talent from Purdue University, the existing infrastructure for chip manufacturing, and the support provided by both state and local governments.

This investment aligns with SK Hynix’s broader commitment to the semiconductor industry. In 2022, the company pledged to invest $15 billion in various initiatives, including research and development programs, materials, and the creation of advanced packaging and testing facilities in the United States.

Furthermore, SK Hynix recently commenced mass production of the latest iteration of HBM chips, known as HBM3E. These chips, serving as an upgrade to the previous HBM3 version, are reportedly being supplied to Nvidia, further solidifying SK Hynix’s position as a key supplier in the AI chip market.

With US-based Nvidia commanding a significant share of the AI chip market, SK Hynix’s investments and technological advancements are poised to play a crucial role in meeting the growing demand for high-performance computing solutions globally.

In addition to its investment in Indiana, SK Hynix reaffirmed its commitment to domestic projects in Korea, including the Yongin Semiconductor Cluster. The company aims to break ground on the first fab in March 2025, further solidifying its global presence and technological prowess. News Desk