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SK hynix invests over $4 billion in HBM advanced packaging facility in Indiana

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SK hynix  held a groundbreaking ceremony for an advanced packaging production facility for AI memory on the 27th (local time) at the Holloway Gymnasium, Purdue University, in West Lafayette, Indiana.

Advanced Packaging is defined as an advanced semiconductor back-end technology that combines multiple chips into a single package or stacks them vertically to enhance performance, overcoming the physical limits of micro-fabrication processes that shrink chip sizes.

The groundbreaking ceremony was attended by Indiana Governor Mike Braun, US Senator Todd Young, Purdue University President Mitch Daniels, Chairman of the Korea-US Alliance Foundation Robert Abrams, Kang Kyung-wha, Ambassador of South Korea to the United States, SK Group Vice Chairman Yu Jeong-Joon, Vice Chairman Lee Hyung-hee, and SK hynix CEO Kwak Noh-Jung.

The Indiana fab has a total expected investment of over $4 billion. It is scheduled to open its cleanroom by October 2028 and initiate mass production of next-generation HBM in the second half of 2029. It is projected to operate with a workforce of approximately 1,000 personnel during commercial operations. This marks SK hynix’s first HBM production base in the United States. Wafers produced by SK hynix in Korea will be delivered to Indiana for advanced packaging and testing before Made in USA products are supplied to US customers.

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An Advanced Packaging R&D Testbed will be built alongside the production lines for collaborative development of next-generation packaging technologies, prototype fabrication, and performance validation by customers, universities, and business partners.

More than 100 companies are being considered as suppliers for materials, components, and equipment for the West Lafayette facility. SK hynix plans to create approximately 7,000 direct and indirect jobs with local and national companies during construction and subsequent commercial operations.

At the ceremony, SK hynix signed a Memorandum of Understanding with Purdue University for research and development collaboration in advanced packaging. Both parties will jointly research system integration and advanced packaging technologies, including HBM. SK hynix plans to expand efforts on cultivating and recruiting talent from across the Midwest.

A recruitment partnership was established for discharged USFK service members. SK Group will participate as a hiring corporation in the USFK Veterans Job Platform operated by the Korea Chamber of Commerce and Industry and the Korea-US Alliance Foundation.

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US Senator Todd Young said: “SK hynix’s historic investment in West Lafayette is further proof that Indiana is leading the way in rebuilding America’s semiconductor industry. This project will create good-paying jobs, strengthen our national and economic security, and ensure the technologies of the future are developed and manufactured here in the United States. I was proud to help make this investment possible through the CHIPS and Science Act, and I look forward to seeing the impact it will have on Hoosiers and our country for decades to come.”

Indiana Governor Mike Braun said: “This project will usher in the next generation of American innovation, bring thousands of good-paying jobs to Indiana and supercharge regional economic development. It’s a win for Hoosiers, a win for our economy and a great leap forward for Indiana in the race to be the best in the industries of the future.”

Kang Kyung-wha, South Korean Ambassador to the US, stated: “SK hynix’s investment in Indiana is not merely an investment in semiconductor manufacturing facilities, but the establishment of the first AI memory production facility and R&D center in the United States, creating a unique model for nurturing semiconductor talent and strengthening collaboration with the government and external organizations.”

Kwak Noh-Jung, CEO of SK hynix, said: “Today marks the day when the United States and SK hynix embark on a new future of AI together. The United States is the epicenter of AI innovation, bringing together premier customers, top-tier R&D capabilities, and partners and Indiana fab will become a gateway to deliver first Made in USA HBM proudcts. We will expand our investments and collaboration in the US, grow together, and become the most trusted partner in shaping the future of AI in America.”

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EEHerald News Desk

Editor, Electronics Engineering Herald


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