SK Hynix plans to speculate $3.87 billion in U.S. chip facility | USAEMALL.com

SK Hynix, one of many world’s largest reminiscence chipmakers, mentioned it will 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 University 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 — essential elements 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 will “strengthen supply-chain resilience and develop a local semiconductor ecosystem.” 

The mission can even carry greater than a thousand new jobs to the area and can embrace an R&D facility to develop future generations of chips, in accordance with the corporate.

The deliberate Indiana facility joins an extended checklist 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 supplies 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. 

Sen. Todd Young, 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.”

Other Asian chipmaking giants have been drawn to the U.S. lately. 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 services in Arizona.

While the distribution of CHIPS Act funding took over a yr, final month the White House 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 Stock Exchange. The firm’s share worth skyrocketed greater than 120% over the previous yr amid pleasure surrounding Nvidia and AI.