SK hynix Unveils $3.87B Memory Packaging Fab in the U.S., Paving the Way for HBM4 and Beyond

SK hynix announces plans to build its first advanced memory packaging facility in West Lafayette, Indiana, focusing on next-generation high-bandwidth memory stacks, with an investment of $3.87 billion, and plans to collaborate with Purdue University on research and development projects.

First advanced memory packaging facility in the United States, boosting the country's semiconductor industry and creating job opportunities
Collaboration with Purdue University for research and development projects, contributing to the development of a local semiconductor ecosystem
Investment of $3.87 billion, making it one of the most advanced semiconductor packaging facilities worldwide and showcasing SK hynix's commitment to innovation and growth

SK hynix, a leading memory maker, has announced its plans to construct an advanced memory packaging facility in West Lafayette, Indiana. This move marks a significant milestone for both SK hynix and the United States, as it will be the country’s first advanced memory packaging facility and the company’s first major manufacturing operation in America. The facility, set to commence operations in 2028, will focus on the production of next-generation high-bandwidth memory (HBM) stacks. Additionally, SK hynix has agreed to collaborate on research and development projects with Purdue University.

SK hynix CEO Kwak Noh-Jung expressed excitement about being the first in the industry to establish a advanced packaging facility for AI products in the United States. This facility will not only enhance supply-chain resilience but also contribute to the development of a local semiconductor ecosystem.

The primary function of the facility will be the assembly of known good stacked dies (KGSDs) for HBM, which involves stacking multiple memory devices on a base die. Furthermore, it will serve as a hub for the development of next-generation HBM technology and will house a packaging research and development line. However, the plant will not manufacture DRAM dies itself and is likely to source them from SK hynix’s fabs in South Korea.

The construction of this facility requires a substantial investment of $3.87 billion, making it one of the most advanced semiconductor packaging facilities worldwide. Although SK hynix held an investment agreement ceremony with representatives from Indiana State, Purdue University, and the U.S. government, it remains undisclosed whether the company will receive any funding from the U.S. government or other initiatives.

The cost of this facility significantly surpasses that of packaging facilities built by other major players in the industry, underscoring the magnitude of SK hynix’s investment. In fact, it exceeds the advanced packaging capital expenditure budgets of Intel, TSMC, and Samsung in 2023, based on estimates from Yole Intelligence.

Considering SK hynix’s product roadmap, it is expected that the facility will be utilized, at least in part, for the assembly of HBM4 and HBM4E stacks once it becomes operational in 2028. These next-generation stacks feature a 2048-bit interface, making their packaging process more complex than the existing 1024-bit HBM3/HBM3E packaging. Consequently, more advanced tools will be required, contributing to the higher cost compared to some existing advanced packaging facilities. It remains uncertain whether the SK hynix facility will offer services for integrating HBM4/HBM4E directly onto processors using hybrid bonding, given the complexity of the 2048-bit interface.

HBM is primarily used in AI and high-performance computing applications, making it strategically important to have its production located in the United States. However, the actual memory dies will still need to be manufactured elsewhere at dedicated DRAM fabs.

In addition to support from state and local governments, SK hynix selected West Lafayette, Indiana, as the site for its new facility to collaborate with Purdue University and Purdue’s Birck Nanotechnology Center on research and development projects related to advanced packaging and heterogeneous integration.

SK hynix plans to partner with Purdue University and Ivy Tech Community College to establish training programs and multidisciplinary degree courses aimed at nurturing a skilled workforce and ensuring a consistent stream of emerging talent for its advanced memory packaging facility and R&D operations.

Purdue University President Mung Chiang expressed enthusiasm about this transformative investment, highlighting the strength of the state and university in semiconductors, hardware AI, and the hard tech corridor. He emphasized that this milestone completes the supply chain of the digital economy in the country through advanced chip packaging. The facility, located at Purdue Research Park, is expected to thrive through innovation and become the largest facility of its kind at a U.S. university.

About Our Team

Our team comprises industry insiders with extensive experience in computers, semiconductors, games, and consumer electronics. With decades of collective experience, we’re committed to delivering timely, accurate, and engaging news content to our readers.

Background Information

About Intel: Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

About Samsung: Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

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.

About TSMC: TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

Technology Explained

HBM3E: HBM3E is the latest generation of high-bandwidth memory (HBM), a type of DRAM that is designed for artificial intelligence (AI) applications. HBM3E offers faster data transfer rates, higher density, and lower power consumption than previous HBM versions. HBM3E is developed by SK Hynix, a South Korean chipmaker, and is expected to enter mass production in 2024. HBM3E can achieve a speed of 1.15 TB/s and a capacity of 64 GB per stack. HBM3E is suitable for AI systems that require large amounts of data processing, such as deep learning, machine learning, and computer vision.