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What just happened? Just over two months after sources told the Financial Times that SK Hynix was planning to build a manufacturing facility in the US, the South Korean memory maker has made it official.
As previously reported, the advanced packaging facility and research and development hub for artificial intelligence will be built in Indiana – in the city of West Lafayette, to be exact. The plant will turn out next generation, high-bandwidth memory, a core component in the creation of GPUs used to train artificial intelligence systems.
SK Hynix said it selected Indiana as its new home due to its resilient manufacturing infrastructure and R&D ecosystem, as well as the talent pipeline from nearby Purdue University. “Strong support” from local and state government also helped sway their decision.
US Senator Todd Young said the CHIPS and Science Act opened a door that Indiana has been able to sprint through, adding that SK Hynix will soon be a household name in the state.
Speaking of local talent, SK Hynix is also planning to work with Purdue University as well as Ivy Tech Community College to create training initiatives and diverse degree programs, fostering a skilled workforce and ensuring a steady stream of fresh, young talent.
In February, sources said the HBM created in Indiana will be paired with Nvidia GPUs. Existing HBM chips from SK Hynix are manufactured in South Korea and shipped to Taiwan, where contract manufacturer TSMC integrates them into Nvidia products. SK Hynix’s Indiana facility could move Nvidia one step closer to being able to produce GPUs domestically.
The memory maker valued the project at approximately $3.87 billion, and said it expects the facility to bring more than a thousand new jobs to the region. Locals should not bank on a paycheck from SK Hynix anytime soon, however, as the project isn’t expected to be completed for several more years.
Mass production at the new HBM facility is tentatively slated to begin in the second half of 2028, we’re told.
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