West lafayette: SK hynix Inc. will officially break ground for its new semiconductor packaging plant in Indiana on August 27, as reported by industry sources on Wednesday. The South Korean chipmaker plans to invest $3.87 billion in its first U.S. advanced packaging and research and development facility located in West Lafayette, Indiana. The facility is set to produce high bandwidth memory (HBM) chips, which are essential for artificial intelligence (AI) applications.

According to Yonhap News Agency, the groundbreaking ceremony is expected to be attended by SK hynix Chief Executive Officer (CEO) Kwak Noh-jung along with several CEOs and officials from major technology companies. Moreover, SK Group Chairman Chey Tae-won may be present at the event, with speculation that Nvidia Corp. CEO Jensen Huang could also make an appearance. SK hynix and Nvidia have maintained a partnership in global AI data center projects and the supply of memory chips and graphics processing units (GPUs).

Chey and Huang have engaged in frequent meetings both in South Korea and the United States since last year, indicating strong ties between the two companies. The new facility in Indiana marks a significant expansion for SK hynix into the U.S. market, signaling their commitment to advancing technology for AI applications.