SK hynix Inc., a global leader in the production of High-Bandwidth Memory (HBM) chips, has unveiled plans to invest approximately $3.87 billion in establishing an advanced semiconductor packaging and research and development (R&D) facility in West Lafayette, Indiana. This strategic initiative marks the first investment of its kind on American soil, focusing on the production of next-generation HBM for Artificial Intelligence (AI) applications. The decision to locate the facility in Indiana was influenced by the robust support from state and local governments, the area’s vital manufacturing infrastructure, and the rich talent pool offered by Purdue University.
The state-of-the-art facility is set to mass-produce the most advanced Dynamic Random Access Memory (DRAM) chips, crucial for powering AI systems, including generative AI technologies like ChatGPT. These chips, known for their high performance and efficiency, play a pivotal role in the future of computing, particularly in the AI sector.
Collaboration with Purdue University is a crucial component of SK hynix’s strategy, aimed at bolstering the AI supply chain and promoting innovation within the U.S. The university is recognized for its leading research in semiconductors and hardware AI, making it an ideal partner for SK hynix. The investment is expected to create over a thousand new jobs, enhancing the region’s economic landscape and reinforcing the United States’ position in the global semiconductor industry.
The facility, expected to commence mass production in the latter half of 2028, will focus on chip production and house an advanced packaging R&D line. This move aligns with the industry’s shift towards chiplet packaging technology, a promising solution to continue enhancing chip density and performance amid tech shrinkage and hardware limitations.
Indiana Governor Eric Holcomb lauded the investment as a testament to the state’s emerging leadership in the hard tech sector, emphasizing, “I’m so proud to officially welcome SK hynix to Indiana, and we’re confident this new partnership will enhance the Lafayette-West Lafayette region, Purdue University and the state of Indiana for the long term. 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 U.S. innovation and national security, putting Hoosiers at the forefront of national and global advancements.”
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. We are grateful for the support from the Government of Indiana, Purdue University, and the broader community involved, and we look forward to expanding our partnership in the long run.”
This venture is a major step towards establishing the Midwest as a central hub for semiconductor innovation, dubbed the Silicon Heartland. It aims to position the region at the forefront of next-generation computing, particularly in the AI era, fostering a vibrant technological advancement and economic growth ecosystem.
