This investment is part of SK Hynix's broader commitment to invest $15 billion in the semiconductor industry, including R&D initiatives and the establishment of advanced packaging and testing facilities in the US. The move also aligns with the US CHIPS and Science Act, which provides nearly $53 billion to revitalize the domestic chip supply chain and boost R&D efforts. Other major players like Intel, Samsung, and Taiwan Semiconductor Manufacturing Co. (TSMC) have also received substantial funding under this act to enhance semiconductor manufacturing capabilities within the US.
Key takeaways:
- South Korean semiconductor company SK Hynix is investing $3.9 billion in a new chip packaging fabrication plant in Indiana, focusing on producing high bandwidth memory (HBM) chips used in AI systems.
- The investment aligns with President Biden's agenda to enhance domestic chip production capabilities and is part of SK Hynix's broader commitment to allocate $15 billion toward the semiconductor industry.
- The new facility is expected to start mass production of these advanced chips in the second half of 2028 and is anticipated to create local, high-paying jobs.
- Other major players like Intel, Samsung, and Taiwan Semiconductor Manufacturing Co. (TSMC) are also receiving substantial funding under the US CHIPS and Science Act to bolster semiconductor manufacturing capabilities within the country.