West lafayette: South Korean chipmaker SK hynix held a groundbreaking ceremony for an advanced packaging production facility for artificial intelligence (AI) memory in Indiana, aiming to produce hundreds of thousands of wafers annually there.
According to Yonhap News Agency, the ceremony took place at Purdue University in West Lafayette, as the tech giant is forging ahead with plans to establish its first next-generation High Bandwidth Memory (HBM) production hub in the United States, with a total investment estimated at over US$4 billion. HBM is a critical component of advanced chips that power AI.
In the Indiana fab, SK hynix plans to open its cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029. The company projects that the fab will become a key HBM production base in the U.S. by 2030, with about 1,000 personnel during its expected commercial operations.
The chipmaker also plans to build an "advanced packaging research and development testbed" alongside the production lines, enabling customers, universities, and business partners to work together to develop packaging technologies and execute prototype fabrication and performance validation.
It pointed out that cutting-edge wafers produced by SK hynix in South Korea will be delivered to Indiana, where they will undergo advanced packaging and testing before "made-in-U.S.A." products are supplied to American big-tech companies like Nvidia.
The groundbreaking ceremony was attended by senior Korean and U.S. officials and politicians, and top SK officials, including Korean Ambassador to the U.S. Kang Kyung-wha, Indiana Governor Mike Braun, U.S. Senator Todd Young (R-IN), SK Group Vice Chairman Yu Jeong-Joon, Vice Chairman Lee Hyung-hee, and SK hynix CEO Kwak Noh-Jung.
Kwak stated in his speech that this marks the beginning of a new future for AI in the United States, emphasizing the company's commitment to start volume production of its next-generation HBM4E chips in the third quarter of 2029. He noted that the Indiana facility will ultimately provide a new source of made-in-U.S. HBM, bolstering the U.S. semiconductor supply chain.
SK hynix's latest HBM product is the sixth-generation HBM4, utilized in Nvidia Corp.'s latest AI accelerator, Vera Rubin. The Indiana plant is expected to produce seventh-generation HBM4E chips, catering to Nvidia's plans to enhance the performance of its AI accelerators.
The Indiana facility is being built on land in West Lafayette, home to Purdue University. Once fully operational, it is expected to employ about 1,000 people. SK hynix has also signed a memorandum of understanding with Purdue University to strengthen its R and D capabilities for next-generation HBM development and testing.
Ambassador Kang highlighted the significance of cooperation between trusted partners during a time when semiconductors, AI, and resilient supply chains are increasingly vital. She emphasized the construction project as a prime example of South Korea-U.S. collaboration.
Sen. Young remarked that the construction project will enhance America's national and economic security, ensuring that future technologies are developed and manufactured domestically. He acknowledged the role of the CHIPS and Science Act in facilitating this investment.
SK hynix announced its investment plan in the U.S. during the former Biden administration, driven by the CHIPS Act. In December 2024, the Commerce Department decided to provide up to $458 million in direct funding and up to $500 million in loans to SK hynix under the act for its investment in Indiana.