SK Hynix will commence large-scale production of next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, with full capacity targeted by 2030, the company announced. The South Korean semiconductor manufacturer said the new plant in West Lafayette, Indiana, will also house advanced HBM packaging lines and an AI chip research and development center.
The Indiana facility represents a $4 billion investment, supported by $458 million in U.S. government subsidies and up to $500 million in loans finalized under the CHIPS Act in December 2024. SK Hynix’s board approved total investments of approximately 54.3 trillion won through 2031, including 35.2 trillion won allocated for a second phase of chip factory construction in South Korea.
The company expects the Indiana plant to produce hundreds of thousands of chip wafers annually once fully operational, generating roughly 7,000 direct and indirect local jobs. Cleanroom operations at the facility are projected to begin in the second half of 2028.
SK Hynix currently holds a 58% share of the global HBM market by revenue, according to Counterpoint Research data from the first quarter of 2026, with Samsung Electronics and Micron Technology each holding 21%. The company’s HBM4E chips, designed for AI workloads, stack vertically to deliver faster data processing with lower energy consumption.
Despite the new capacity, SK Hynix warned that memory shortages could persist through the end of 2030 and beyond, driven by surging demand from AI applications. The forecast aligns with projections from industry analysts tracking supply constraints in advanced memory segments.
The announcement follows SK Hynix’s early August 2026 board approval of long-term investments, underscoring its commitment to expanding U.S. semiconductor production amid geopolitical and supply chain considerations.
