The US Department of Commerce has awarded SK Hynix a grant of up to US$458 million under the CHIPS and Science Act (CHIPS Act), supporting the company's efforts to strengthen the AI supply chain in the US. The funding will support the establishment of a research center in Indiana focused on next-generation high bandwidth memory (HBM) and advanced packaging R&D.
The grant will contribute to SK Hynix's planned investment of approximately US$3.87 billion in Lafayette, Indiana, where the company will construct an AI memory packaging factory alongside advanced packaging manufacturing and R&D facilities. These developments aim to address significant gaps in the US semiconductor supply chain. The Commerce Department will release the funding incrementally as SK Hynix achieves specific project milestones.
This strategic investment marks a crucial step towards enhancing supply chain security in the US. With AI applications driving unprecedented demand for HBM, the technology has emerged as one of the core bottlenecks in the AI industry supply chain. The new facility will enable domestic HBM production, creating approximately 1,000 new jobs at the facility, with hundreds more positions generated through construction-related opportunities.
In a parallel development, SK Hynix will partner with Purdue University to establish a research center in Indiana, integrating the development, production, and packaging of next-generation HBM technology as a vital component of the US semiconductor ecosystem.
Additionally, the US government has committed to providing SK Hynix with loans of up to US$500 million, as part of the authorized US$75 billion loan program under the CHIPS Act.
