Key Points:
- SK Hynix plans to invest $4 billion in constructing an advanced chip packaging facility in West Lafayette, Indiana, which will bolster its presence in the U.S.
- The facility’s operations are expected to commence in 2028. It will create 800 to 1,000 new jobs and offer a significant economic boost to the region.
- The investment aligns with SK Hynix’s broader strategy to invest $15 billion in the semiconductor industry, including R&D and facilities in the U.S.
- SK Hynix recently began mass production of next-gen HBM chips. Nvidia relies on SK Hynix as the sole supplier of HBM3 chips, capturing 80% of the AI chip market.
South Korean chipmaker SK Hynix, a key supplier to Nvidia, is reportedly set to invest approximately $4 billion in constructing a state-of-the-art chip packaging facility in West Lafayette, Indiana. The move aims to bolster SK Hynix’s presence in the United States and meet the growing demand for advanced semiconductor technologies.
According to sources familiar with the matter cited by the Wall Street Journal, operations at the new facility are expected to commence in 2028. While SK Hynix is still reviewing its plans for the investment, the facility is anticipated to create between 800 and 1,000 new jobs, offering a significant economic boost to the region.
The decision to establish this advanced chip packaging facility aligns with SK Hynix’s broader strategy, outlined in 2022, to invest $15 billion in the semiconductor industry. This investment encompasses research and development initiatives, materials procurement, and establishing cutting-edge packaging and testing facilities in the United States.
SK Hynix recently initiated mass production of next-generation high-bandwidth memory (HBM) chips designed for artificial intelligence chipsets. Initial shipments of these advanced chips are slated to be supplied to Nvidia, a major player in the AI chip market. SK Hynix has been the exclusive supplier of the current HBM3 version utilized by Nvidia, which commands an impressive 80% share of the AI chip market.
The decision to invest in a new chip packaging facility underscores SK Hynix’s commitment to expanding its global footprint and meeting the demand for advanced semiconductor solutions. SK Hynix aims to strengthen its partnership with Nvidia and capitalize on the growing opportunities in the AI and semiconductor industries by bolstering its presence in the United States.
