South Korea’s SK hynix won $458 million in direct funding and $500 million in loans from the US Commerce Department to build an artificial intelligence chip packaging facility in Indiana, marking another victory for the Biden administration’s semiconductor push.
The memory chip manufacturer plans to invest 3.87 billion won ($3.87 billion) in West Lafayette to establish a packaging plant for AI products and an advanced research center. The facility, to be built near Purdue University, will focus on high-bandwidth memory chips crucial for AI applications.
Commerce Secretary Gina Raimondo said the project will strengthen America’s AI hardware supply chain. The partnership with Purdue University aims to create a research hub for next-generation memory technology development.
The funding package, part of the CHIPS and Science Act, comes with strict performance requirements. SK hynix must meet specific construction, technology, and production milestones to receive the disbursements.
The West Lafayette facility is expected to generate approximately 1,000 permanent positions and hundreds of construction jobs. The plant will help address the growing demand for high-bandwidth memory, which has become a bottleneck in AI chip production.
The Commerce Department will monitor the project through financial and programmatic reports to ensure compliance with award conditions.
