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SK Hynix to Build Advanced Chip Packaging Plant in Indiana

Boost for AI and High-Performance Chips
South Korea
s 000660.KO Blue Chip 150 Tech 350 Semicon 75
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SK Hynix Inc., the world’s second-largest memory chip producer, has reportedly selected Indiana for its new advanced chip packaging plant in the United States, a development first announced in a Financial Times article. This decision comes after SK Hynix’s CEO Chey Tae-won committed to a $22 billion investment to establish chip packaging plants in the US during a 2022 video conference with President Joe Biden. Advanced packaging, a crucial technology for the next generation of semiconductors, involves the sophisticated alignment of multiple chips to enhance performance, crucial for high-bandwidth memory (HBM) chips used in AI applications.

The establishment of this plant marks a significant step for SK Hynix, positioning it closer to key customers like Nvidia Corp., Apple Inc., and Advanced Micro Devices Inc. (AMD), potentially increasing chip orders. The plant is expected to bolster SK Hynix’s role in the HBM market, where it already leads ahead of Samsung Electronics Co. This move is also anticipated to enhance the company’s research and development capabilities in the US, leveraging local talent in advanced packaging technologies.

Despite the announcement, SK Hynix has conveyed caution, stating it is still considering its investment in the US and has yet to finalize the decision. This strategic expansion is in line with the global chipmakers’ rush to meet the surging demand for high-performance chips, highlighting the increasing importance of advanced semiconductor technologies in powering the next wave of AI applications.

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