SK hynix Joins Forces with Indiana for Chip Packaging Investment

SK hynix Inc., the leading producer of High-Bandwidth Memory (HBM) chips, has announced a major investment in West Lafayette, Indiana. The company plans to invest an estimated $3.87 billion to build an advanced packaging fabrication and R&D facility for AI products. This project, the first of its kind in the United States, is expected to drive innovation in the nation’s AI supply chain and create over a thousand new jobs in the region.

The investment agreement ceremony took place at Purdue University in West Lafayette, with officials from Indiana State, Purdue University, and the U.S. government in attendance. Notable attendees included Governor of Indiana Eric Holcomb, Senator Todd Young, and Director of the White House Office of Science and Technology Policy Arati Prabhakar.

SK hynix’s new facility will house an advanced semiconductor production line that will mass-produce next-generation HBM chips. These chips are critical components of graphic processing units used to train AI systems like ChatGPT. Mass production is expected to begin in the second half of 2028. The facility will also serve as an R&D hub for future chip generations and advanced packaging.

The decision to establish the facility in Indiana was influenced by the state’s strong manufacturing infrastructure, R&D ecosystem, and the presence of expert intellectuals in the semiconductor field. Purdue University’s talent pipeline was also a significant factor. The support provided by the state and local government further solidified Indiana as an ideal location for SK hynix’s initiative.

Memory chip innovation continues to drive improvements in computing power and energy efficiency. SK hynix’s chiplet packaging technology has emerged as a promising solution to enhance density and performance when traditional hardware improvements reach their limits. The company’s investment in Indiana will contribute to establishing the region as a Silicon Heartland, a semiconductor cluster at the center of the Midwest Triangle that will attract next-generation computing advancements in the AI era.

Governor Eric Holcomb expressed his excitement about the partnership, highlighting Indiana’s role in the hard tech sector and its contribution to U.S. innovation and national security. Senator Todd Young also praised the investment, emphasizing the confidence that SK hynix has in Indiana’s workforce and the opportunities created by the CHIPS and Science Act.

Purdue University President Mung Chiang emphasized the strength of the state and university in semiconductors, hardware AI, and the hard tech corridor. He described the investment as a monumental moment for completing the supply chain of the digital economy through advanced packaging.

SK hynix CEO Kwak Noh-Jung shared the company’s excitement about becoming the first in the industry to build an advanced packaging facility for AI products in the United States. The new facility will strengthen supply chain resilience and contribute to the development of a local semiconductor ecosystem. SK hynix aims to provide AI memory chips with unmatched capabilities to meet customer needs.

In addition to the investment, SK hynix is collaborating with Purdue University on future R&D projects. These projects include work on advanced packaging, heterogeneous integration, and memory-centric solutions for the generative AI era. The company also plans to collaborate with Purdue University and Ivy Tech Community College to develop training programs and interdisciplinary degree curricula to cultivate a high-tech workforce.

SK hynix is committed to supporting community development and growth opportunities in West Lafayette. The company plans to partner with local non-profits and charities, including Purdue Research Foundation, to provide leadership training and support.

Alongside the investment in Indiana, SK hynix will continue with planned investments in South Korea. The company is preparing for the Yongin Semiconductor Cluster, where it will invest 120 trillion won to build production facilities. The first fab is scheduled to break ground in March 2025, with completion expected in early 2027. SK hynix will also build a mini fab for testing semiconductor materials, components, and equipment.

Background Information

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About SK hynix:

SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.

  

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Technology Explained

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chiplet: Chiplets are a new type of technology that is revolutionizing the computer industry. They are small, modular components that can be used to build powerful computing systems. Chiplets are designed to be used in combination with other components, such as processors, memory, and storage, to create a complete system. This allows for more efficient and cost-effective production of computers, as well as more powerful and versatile systems. Chiplets can be used to create powerful gaming PCs, high-end workstations, and even supercomputers. They are also being used in the development of artificial intelligence and machine learning applications. Chiplets are an exciting new technology that is changing the way we build and use computers.

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