Korean memory manufacturer SK hynix has won $458 million in funding through the CHIPS Act to build a new memory packaging facility in Indiana. This investment aims to address a critical bottleneck in semiconductor production, particularly in the US, as packaging plays a crucial role in advanced chip manufacturing.
Along with direct funding, SK hynix will also have access to an additional $500 million in loans for the project. The facility is expected to be operational by 2028 and will be the first of its kind in the US, focusing on memory packaging, a key step in the production of high bandwidth memory (HBM) for AI products.
Strategic Importance of HBM Memory
SK hynix, along with Micron, are two of the few companies globally capable of producing HBM chips essential for AI applications. The demand for HBM3e memory is rapidly increasing, making this investment crucial for ensuring a stable supply chain.
The funding enables SK hynix to establish a presence in the US, joining other major semiconductor players like TSMC, Micron, Intel, and Samsung. This move underscores the growing importance of US-based semiconductor production and the government's efforts to bolster domestic chip manufacturing.
Job Creation and Impact
The new facilities will generate approximately 1,000 direct jobs and stimulate activity in the construction industry. While SK hynix does not currently fabricate memory chips in the US, they will be a key player in the packaging process. Micron, on the other hand, is investing heavily in memory chip manufacturing facilities in the US, aiming to increase America's share of advanced memory production by 2035.
SK hynix Global Operations
In addition to its new Indiana facility, SK hynix operates several fabrication sites in Asia, including three in Icheon, South Korea and one in Chongqing, China. The company also has research and development offices in San Diego, Poland, and Taiwan.
Future Investments
SK hynix is reportedly also planning to invest as much as $1 billion in its South Korean packaging facilities in 2024.
