SK Hynix brand displayed on a telephone display screen 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, stated it could make investments $3.87 billion in its first chip packaging facility within 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 mission at an occasion at Purdue College on Wednesday, with officers from Indiana State and the U.S. authorities in attendance.
SK Hynix stated the power, slated for operation in 2028, will home a manufacturing line for SK Hynix’s cutting-edge high-bandwidth reminiscence chips — vital elements within the Nvidia GPUs used to coach AI programs 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,” stated SK Hynix CEO Kwak Noh-Jung in a press release, including it could “strengthen supply-chain resilience and develop a local semiconductor ecosystem.”
The mission will even convey greater than a thousand new jobs to the area and can embody an R&D facility to develop future generations of chips, based on the corporate.
U.S. CHIPS Act
The deliberate Indiana facility joins an extended record of latest semiconductor investments introduced within the U.S. for the reason that August 2022 passage of the U.S. CHIPS and Science Act, which seeks to construct up the home chip business seen as vital to the economic system and nationwide safety.
The act gives billions in incentives for firms to onshore chip manufacturing within the U.S., on situation they don’t increase sure semiconductor manufacturing operations in China and different international locations deemed a nationwide safety threat.
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Sen. Todd Younger, R-Ind., stated 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 dedicated $40 billion for 2 foundry chip amenities in Arizona.
Whereas the distribution of CHIPS Act funding took over a 12 months, final month the White Home awarded Intel as much as $8.5 billion in grants, with billions extra in loans obtainable.
SK Hynix was up greater than 4% in Thursday buying and selling on the Korea Inventory Trade. The corporate’s share value skyrocketed greater than 120% over the previous 12 months amid pleasure surrounding Nvidia and AI.