The U.S. Department of Commerce has awarded up to $458 million in direct funding to SK hynix under the CHIPS Incentives Program. The funding supports the company’s $3.87 billion investment in West Lafayette, Indiana, to develop a cutting-edge memory packaging plant and advanced packaging R&D facility. This initiative aims to address a critical gap in the U.S. semiconductor supply chain, especially for AI-driven high-bandwidth memory (HBM) products.
The funding, part of the bipartisan CHIPS and Science Act, will be disbursed in stages tied to project milestones. SK hynix’s partnership with Purdue University will establish a research hub to advance HBM and semiconductor packaging technologies, strengthening the U.S. semiconductor ecosystem. The project is expected to generate approximately 1,000 permanent facility jobs and hundreds of construction jobs, enhancing Indiana’s role in the global AI hardware supply chain.
“By investing in SK hynix and West Lafayette, we’re bolstering America’s global technology leadership and securing critical AI supply chain components,” said Commerce Secretary Gina Raimondo. The CHIPS Program Office also announced $500 million in loans to SK hynix, supplementing the direct funding and supporting long-term capital expenditures tied to the project.
Key Points
• Funding: Up to $458 million in direct funding and $500 million in loans through the CHIPS Incentives Program.
• Investment: SK hynix is investing $3.87 billion in West Lafayette, Indiana, for advanced packaging and R&D facilities.
• Jobs Created: Approximately 1,000 permanent jobs and hundreds of construction jobs.
• Focus: High-bandwidth memory (HBM) and advanced semiconductor packaging to meet AI supply chain demands.
• Partnership: Collaboration with Purdue University to create a research hub.
“SK hynix looks forward to collaborating with the U.S. government, the State of Indiana, Purdue University, and our U.S. business partners to build a robust and resilient AI semiconductor supply chain in the U.S.,” said SK hynix CEO Kwak Noh-Jung.