SK Hynix logo design showed on a phone screen as seen in this illustration image taken in Krakow, Poland on January 30, 2023.
Jakub Porzycki|Nurphoto|Getty Images
SK Hynix, among the world’s biggest memory chipmakers, stated it would invest $3.87 billion in its very first chip product packaging center in the U.S., marking another triumph for the Biden administration’s efforts to onshore chip production.
The South Korean company revealed the West Lafayette, Indiana- based job at an occasion at Purdue University on Wednesday, with authorities from Indiana State and the U.S. federal government in presence.
SK Hynix stated the center, slated for operation in 2028, will house an assembly line for SK Hynix’s advanced high-bandwidth memory chips– crucial elements in the Nvidia GPUs utilized to train AI systems 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 declaration, including it would “strengthen supply-chain resilience and develop a local semiconductor ecosystem.”
The job will likewise bring more than a thousand brand-new tasks to the area and will consist of an R&D center to establish future generations of chips, according to the business.
U.S. CHIPS Act
The prepared Indiana center signs up with a long list of brand-new semiconductor financial investments revealed in the U.S. given that the August 2022 passage of the U.S. CHIPS and Science Act, which looks for to develop the domestic chip market viewed as important to the economy and nationwide security.
The act offers billions in rewards for business to onshore chip production in the U.S., on condition they do not broaden particular semiconductor production operations in China and other nations considered a nationwide security danger.
Sen Todd Young, R-Ind, stated in a declaration “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.”
Other Asian chipmaking giants have actually been drawn to the U.S. in the last few years. South Korea’s Samsung is constructing a $17 billion chip fabrication plant in Texas, and Taiwan’s TSMC, the world’s biggest chip foundry, has actually dedicated $40 billion for 2 foundry chip centers in Arizona.
While the circulation of CHIPS Act financing took control of a year, last month the White House granted Intel approximately $8.5 billion in grants, with billions more in loans offered.
SK Hynix was up more than 4% in Thursday trading on the Korea StockExchange The business’s share cost increased more than 120% over the previous year in the middle of enjoyment surrounding Nvidia and AI.
