SK Hynix Inc. broke ground on Thursday on a $4 billion high-bandwidth memory (HBM) packaging and testing facility in West Lafayette, Indiana, marking the South Korean chipmaker’s first U.S.-based production site for advanced memory components.
The 133.5-acre facility, supported by the U.S. Chips and Science Act, will focus on packaging and testing HBM wafers shipped from South Korea before delivery to domestic customers. Cleanroom operations are scheduled to commence by October 2028, with mass production of next-generation HBM slated to begin in the second half of 2029.
Upon full operation, the plant is expected to employ about 1,000 workers directly, while generating roughly 7,000 additional jobs through construction, operations, and ancillary industries. SK Hynix will receive up to $458 million in direct funding and up to $500 million in loans under the Chips Act, signed into law by President Joe Biden in 2022.
The project underscores growing U.S. efforts to bolster domestic semiconductor supply chains amid rising demand for HBM, a critical component in high-performance AI acceleration systems. SK Hynix, South Korea’s second most valuable company after Samsung Electronics, is evaluating more than 100 potential suppliers for materials, components, and equipment. The company’s HBM is a key input for Nvidia Corp.’s advanced AI chips.
At the groundbreaking ceremony, SK Hynix CEO Kwak Noh-Jung emphasized the company’s commitment to expanding U.S. investments and partnerships, stating the facility would help position the company as a trusted partner in shaping the future of AI in America.
