SK hynix to invest $3.87 billion in advanced packaging plant and AI research facility in indiana.

SK Hynix, the world’s second-largest memory chip maker, announced plans on Wednesday to invest approximately $3.87 billion in constructing an advanced packaging plant and research and development facility for AI products in Indiana, United States.

The forthcoming plant will feature a cutting-edge chip production line aimed at mass-producing next-generation high bandwidth memory (HBM) chips, vital components utilized in graphic processing units pivotal for training artificial intelligence systems, as noted by the supplier to Nvidia in a statement.

Mass production of these chips is slated to commence in the latter half of 2028. Alongside chip manufacturing, the new facility in West Lafayette, Indiana, will accommodate a dedicated packaging research and development line.

SK Hynix’s CEO, Kwak Noh-Jung, emphasized that the establishment of this facility “will help strengthen supply chain resilience” for AI chips within the United States.

The decision to establish the facility in Indiana was influenced by various factors, including the region’s rich engineering talent pool provided by Purdue University, robust infrastructure for chip manufacturing, and supportive measures from the state and local government, the chipmaker stated.

This investment aligns with SK Hynix’s broader commitment, made in 2022, to inject $15 billion into the semiconductor industry through diverse initiatives encompassing research and development programs, materials, and the establishment of an advanced packaging and testing facility in the United States.

Last month, SK Hynix initiated mass production of the latest iteration of HBM chips, dubbed HBM3E, with initial shipments reportedly directed to Nvidia. SK Hynix has been the exclusive supplier of the previously utilized HBM3 chips to Nvidia, a company that commands an 80% share of the market for AI chips.