USA – South Korean chip manufacturer SK hynix has announced a significant investment exceeding US$3.87 billion to establish an advanced chip packaging facility in West Lafayette, Indiana, USA.
The new facility will focus on the fabrication and research and development (R&D) of high-intensity and artificial intelligence (AI)-based microelectronic products and applications within the region.
Spanning 430,000 square feet across 90 acres at the Purdue Research Park, the plant aims to meet the growing demand for semiconductors in the US market.
SK hynix’s site will feature an advanced semiconductor packaging production line specializing in next-generation high-bandwidth memory (HBM).
Additionally, it will produce dynamic random-access memory (DRAM) chips, essential components of graphic processing units, and host an advanced packaging R&D line to support the development of future chip generations.
Expected to commence mass production in the latter half of 2028, the facility is projected to create approximately 800 new jobs by the end of the decade. SK hynix also plans to collaborate with Purdue University on future R&D initiatives.
SK hynix CEO Kwak Noh-Jung expressed excitement about the venture, emphasizing the company’s commitment to enhancing supply-chain resilience and fostering a local semiconductor ecosystem in the United States.
He highlighted the facility’s role in advancing AI memory chip capabilities to meet customer needs.
The selection of the chip packaging facility’s location was based on various factors, including Purdue University’s talent pipeline, Indiana’s industrial infrastructure, and support from state and local governments.
Indiana Governor Eric Holcomb hailed the investment as a significant milestone for the state’s hard tech sector, emphasizing its contribution to US innovation and national security.
According to the Indiana government, since 2022, eight companies have pledged over $6 billion in investments for semiconductor production plants in the state, further solidifying Indiana’s position in the semiconductor industry.
In recent developments, SK hynix commenced mass production of its next-generation high-bandwidth memory (HBM) chips for use in artificial intelligence chipsets.
Initial shipments of these cutting-edge chips are reportedly destined for Nvidia (NVDA.O), marking a significant milestone in the competitive landscape.
The newly introduced HBM3E chips have become a focal point of intense competition among industry players. In February, Micron Technology announced the commencement of mass production of these chips, while Samsung Electronics claimed the development of the industry’s first 12-stack HBM3E chips.
Despite growing competition, SK Hynix has maintained its leadership in the HBM chip market, having been the sole supplier of the current version, HBM3, to Nvidia, which commands an 80% share of the AI chip market.
SK Hynix expressed confidence in its successful mass production of HBM3E, leveraging its industry experience to solidify its position in the AI memory space.
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