The U.S. Commerce Department it will provide up to $450 million in grants to SK Hynix for the development of an advanced packaging plant and R&D facility in Indiana, aimed at artificial intelligence products.
This initiative is part of SK Hynix’s larger $3.87 billion investment plan, revealed in April, to construct a facility dedicated to mass-producing next-generation high-bandwidth memory chips essential for AI training.
The project will also benefit from $500 million in government loans and is expected to qualify for a 25 percent investment tax credit. This Indiana-based memory packaging plant and R&D facility is anticipated to generate 1,000 jobs and address a significant gap in the U.S. semiconductor supply chain.
Commerce Secretary Gina Raimondo emphasized that this project is a part of a broader $39 billion subsidy program approved by Congress in August 2022, designed to bolster U.S. semiconductor manufacturing. She noted that the Commerce Department has announced term sheets with 15 companies, offering about $30 billion in funding to unlock an additional $300 billion of private capital.
The United States now boasts major commitments from all five leading semiconductor manufacturers —TSMC, Intel, Samsung Electronics, Micron, and SK Hynix — ensuring a secure and diverse supply chain for advanced semiconductors vital for AI technologies, Reuters news report said.
SK Hynix’s CEO, Kwak Noh-Jung, expressed appreciation for the U.S. Department of Commerce’s support, highlighting the company’s commitment to collaborating with local institutions like Purdue University to advance semiconductor R&D. The facility in West Lafayette will not only produce high-bandwidth memory chips but also contribute to the resilience of the global semiconductor industry.
In addition to this, the Commerce Department in May announced a $75 million award to Absolics for constructing a facility in Georgia to supply advanced materials to the semiconductor industry, further strengthening the U.S. position in the global semiconductor market.
