WASHINGTON (dpa-AFX) - The U.S. Department of Commerce has awarded SK hynix, the leading producer of high-bandwidth memory, $458 million in direct funding under the CHIPS Incentives Program's Funding Opportunity for Commercial Fabrication Facilities.
This funding will support SK hynix's $3.87 billion investment in West Lafayette, Indiana, to build a memory packaging plant for artificial intelligence products and an advanced packaging fabrication and R&D facility. This is expected to fill a critical gap in the U.S. semiconductor supply chain. The Commerce Department said it will disburse the funds based on the company's completion of project milestones.
In addition to the direct funding, the CHIPS Program Office will provide up to $500 million in loans to SK hynix under the award.
'With this investment in SK hynix and their partnership with Purdue University, we are solidifying America's AI hardware supply chain in a way no other country on Earth can match, creating hundreds of jobs in Indiana, and ensuring the Hoosier State plays an important role in advancing U.S. economic and national security,' said U.S. Secretary of Commerce Gina Raimondo.
The CHIPS investment in SK hynix represents a significant step in advancing the security of the U.S. supply chain as HBM manufacturing will be available in the United States. AI is driving the growth and demand for HBM capacity, which is one of the core supply chain constraints for the AI industry.
Additionally, this investment is expected to create approximately 1,000 new facility jobs and hundreds of construction jobs and establish a research hub in Indiana through SK hynix's partnership with Purdue University. The next generation HBM that will be researched, developed, mass-produced, and packaged in this ecosystem with Purdue University will play an important role in the U.S. semiconductor ecosystem, according to the Department of Commerce.
'SK hynix looks forward to collaborating with the U.S. government, the State of Indiana, Purdue University, and our U.S. business partners to build a robust and resilient AI semiconductor supply chain in the U.S.,' said SK hynix CEO Kwak Noh-Jung.
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