SK Hynix emblem displayed on a telephone display as seen on this illustration picture taken in Krakow, Poland on January 30, 2023.
Jakub Porzycki | Nurphoto | Getty Photographs
SK Hynix, one of many world’s largest reminiscence chipmakers, mentioned it might make investments $3.87 billion in its first chip packaging facility in the U.S., marking one other victory for the Biden administration’s efforts to onshore chip manufacturing.
The South Korean agency introduced the West Lafayette, Indiana-based undertaking at an occasion at Purdue College on Wednesday, with officers from Indiana State and the U.S. authorities in attendance.
SK Hynix mentioned the ability, slated for operation in 2028, will home a manufacturing line for SK Hynix’s cutting-edge high-bandwidth reminiscence chips — vital parts within the Nvidia GPUs used to coach AI techniques like ChatGPT.
“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States,” mentioned SK Hynix CEO Kwak Noh-Jung in a press release, including it might “strengthen supply-chain resilience and develop a local semiconductor ecosystem.”
The undertaking may also carry greater than a thousand new jobs to the area and can embrace an R&D facility to develop future generations of chips, in keeping with the corporate.
U.S. CHIPS Act
The deliberate Indiana facility joins a protracted listing of latest semiconductor investments introduced within the U.S. because the August 2022 passage of the U.S. CHIPS and Science Act, which seeks to construct up the home chip trade seen as crucial to the economic system and nationwide safety.
The act offers billions in incentives for corporations to onshore chip manufacturing within the U.S., on situation they don’t broaden sure semiconductor manufacturing operations in China and different nations deemed a nationwide safety danger.
Sen. Todd Younger, R-Ind., mentioned in a press release “The CHIPS and Science Act opened a door that Indiana has been able to sprint through, and companies like SK hynix are helping to build our high-tech future.”
Different Asian chipmaking giants have been drawn to the U.S. in recent times. South Korea’s Samsung is constructing a $17 billion chip fabrication plant in Texas, and Taiwan’s TSMC, the world’s largest chip foundry, has committed $40 billion for 2 foundry chip services in Arizona.
Whereas the distribution of CHIPS Act funding took over a year, final month the White Home awarded Intel as much as $8.5 billion in grants, with billions extra in loans accessible.
SK Hynix was up greater than 4% in Thursday buying and selling on the Korea Inventory Alternate. The corporate’s share value skyrocketed greater than 120% over the previous yr amid pleasure surrounding Nvidia and AI.
