SK Hynix to Build US AI Storage Chip Factory ($3.87B)
SK Hynix has announced plans to establish an advanced packaging production facility in West Lafayette, Indiana, USA, tailored for Artificial Intelligence (AI) storage solutions. This initiative will also involve collaborative semiconductor research and development endeavors with local research institutions, including Purdue University, with a projected investment of $3.87 billion. The investment signing ceremony took place on April 3rd, at Purdue University in West Lafayette, with representatives from SK Hynix, the State of Indiana, Purdue University, and the United States government in attendance.
Following the rapid expansion of the artificial intelligence market last year, the demand for ultra-high-performance memory, such as High Bandwidth Memory (HBM), has surged dramatically, elevating the significance of advanced semiconductor packaging. As a leading manufacturer in the HBM market seeking to bolster its technological leadership, SK Hynix has chosen to invest in advanced backend process technology in the United States, catering to the extensive needs of its American technology clientele and actively advancing research in advanced backend process technologies.
After evaluating multiple potential sites, SK Hynix ultimately selected Indiana for its investment. This decision was influenced by the state’s proactive investment attraction policies and the region’s rich manufacturing infrastructure essential for semiconductor production, alongside academic and research institutions renowned for advanced studies, such as Purdue University.
In addition to its investments in the United States, SK Hynix is also advancing investment projects in South Korea. The construction of the Yongin Semiconductor Cluster, which is being developed with an investment of 120 trillion Korean won, is currently underway, with plans to commence the construction of the first factory in March of next year and complete it by the beginning of 2027. SK Hynix also plans to construct a “mini-factory,” a research facility equipped with 300mm wafer process equipment designed to verify semiconductor materials, components, and equipment, thereby strengthening the semiconductor ecosystem.
