SK Hynix Breaks Ground on $4 Billion Indiana AI Chip Plant

SK Hynix Inc. held a groundbreaking ceremony Thursday for a new advanced memory packaging and research facility in West Lafayette, Indiana. The project represents a more than $4 billion investment and will serve as the company's first high-bandwidth memory (HBM) packaging base in the United States.

The facility is scheduled to open its cleanroom by October 2028, with mass production of next-generation HBM expected in the second half of 2029. The plant aims to secure the domestic AI chip supply chain for major customers, including Nvidia, Microsoft, and Google, while employing approximately 1,000 people and creating 7,000 direct and indirect jobs.

Supported by the US Chips and Science Act, the project received $458 million in direct grants and up to $500 million in loans to reduce U.S. reliance on overseas semiconductor production. As part of the expansion, SK Hynix signed an agreement with Purdue University to collaborate on HBM and advanced packaging research.