SK Hynix held a groundbreaking ceremony on Thursday for a $4 billion advanced semiconductor packaging and R&D facility in West Lafayette, Indiana. The project, located at Purdue Research Park, will focus on high-bandwidth memory (HBM) packaging and testing for AI chips, with volume production of next-generation HBM4E chips slated to begin in the third quarter of 2029.
The facility is designed to handle advanced wafers produced in South Korea before supplying U.S. customers, including Nvidia, Microsoft, and Alphabet’s Google. Chief Executive Kwak Noh-Jung expects the site to eventually reach an annual capacity of hundreds of thousands of wafers, supporting growing demand for AI memory solutions. The company also anticipates persistent memory chip shortages through the end of 2030.
Construction milestones include the start of cleanroom operations in the second half of 2028, with full-scale production ramping up the following year. The project is expected to create about 7,000 direct and indirect local jobs, aligning with broader U.S. efforts to bolster domestic semiconductor manufacturing.
Funding for the Indiana facility includes $458 million in U.S. government grants and up to $500 million in loans under the CHIPS Act, finalized in December 2024. Earlier this month, SK Hynix’s board approved 54.3 trillion won ($38.3 billion) in investments through 2031, with 35.2 trillion won allocated for the second phase of its South Korean fabrication plants.
SK Hynix currently dominates the global HBM market, holding a 58% revenue share in the first quarter of 2026, according to Counterpoint Research. Samsung Electronics and Micron Technology each held 21% shares. The expansion comes as Nvidia forecasts a 70% revenue increase in its next fiscal year, underscoring strong demand for AI-driven memory solutions.
