The U.S. Commerce Department announced plans to award SK Hynix up to $450 million in grants to support the construction of an advanced packaging plant and a research and development facility for artificial intelligence products in Indiana. This initiative is part of a broader strategy to strengthen the U.S. semiconductor supply chain and create 1,000 jobs.
SK Hynix, the world’s second-largest memory chip manufacturer, disclosed in April its intention to invest approximately $3.87 billion in building the Indiana facility. The project will include an advanced production line for mass-producing next-generation high-bandwidth memory chips, which are crucial for graphics processing units used in AI systems. This facility will enhance the U.S.’s capabilities in semiconductor manufacturing, a critical area for technological innovation and economic security.
In addition to the grants, the Commerce Department plans to offer $500 million in government loans for the SK Hynix project, which is also expected to qualify for a 25% investment tax credit. This support is part of a $39 billion subsidy program approved by Congress in August 2022, aimed at bolstering U.S. semiconductor manufacturing.
Commerce Secretary Gina Raimondo highlighted that the department has issued term sheets with 15 companies, unlocking about $30 billion in funding that will stimulate an additional $300 billion in private investment. With major commitments from key semiconductor manufacturers, including TSMC, Intel, Samsung Electronics, Micron, and SK Hynix, the U.S. is positioned to secure a diverse and resilient semiconductor supply chain.
SK Hynix CEO Kwak Noh-Jung expressed gratitude for the U.S. Department of Commerce’s support, emphasizing the project’s transformative potential. The Commerce Department’s initiative reflects a strategic effort to fortify the U.S. position in the global semiconductor industry.
