Key facts
- SK Hynix is building a new advanced packaging and research facility in West Lafayette, Indiana.
- The facility represents an investment of over $4 billion.
- It will focus on high-bandwidth memory (HBM) for AI applications.
- Operations are slated to begin in the second half of 2028.
- The project is expected to create around 7,000 jobs.
- The U.S. government is supporting the project with grants and loans under the CHIPS Act.
South Korean chipmaker SK Hynix has initiated construction on a significant advanced packaging and research facility in West Lafayette, Indiana, with an investment exceeding $4 billion. The facility, located at the Purdue Research Park, is designed to bolster the production of high-bandwidth memory (HBM) chips crucial for artificial intelligence applications. Operations are slated to commence in the latter half of 2028, featuring a next-generation HBM packaging line and an AI semiconductor research and development center.
This strategic expansion aims to bring SK Hynix's AI memory operations closer to key U.S. clients, including Nvidia, Microsoft, and Google, while also fostering research collaborations with Purdue University and cultivating local engineering talent. The project addresses the escalating demand for HBM, driven by the global race to build AI data centers, which has led to memory availability becoming a significant constraint on AI infrastructure expansion.
SK Hynix currently leads the global HBM market, holding a 58% revenue share in the first quarter of 2026, significantly ahead of competitors Samsung Electronics and Micron Technology. The new Indiana facility is expected to create approximately 7,000 direct and indirect jobs and enhance the resilience of the U.S. semiconductor supply chain. The project has secured backing from the U.S. government, which finalized $458 million in grants and up to $500 million in loans under the CHIPS Act in December 2024.