On December 19, 2023, the Biden administration announced that the U.S. Department of Commerce would provide SK hynix with up to $458 million in direct funding through the CHIPS and Science Act's "Commercial Manufacturing Facility Funding Opportunity." This funding will support SK hynix’s $3.87 billion investment in West Lafayette, Indiana, where the company plans to build a state-of-the-art memory packaging plant and advanced R&D facilities for artificial intelligence (AI) products, addressing critical gaps in the U.S. semiconductor supply chain.

U.S. Secretary of Commerce Gina Raimondo highlighted the importance of the CHIPS Act, stating, "By investing in companies like SK hynix and communities like West Lafayette, we are reinforcing America's leadership in AI hardware and creating hundreds of jobs. This investment, in collaboration with Purdue University, ensures Indiana plays a key role in advancing U.S. economic and national security."

Arati Prabhakar, President Biden’s Assistant for Science and Technology, also commented, "This announcement shows that the CHIPS and Science Act is delivering results. The new facility will develop cutting-edge packaging technology, which is vital for maintaining U.S. semiconductor leadership."

This investment in SK hynix, a global leader in high-bandwidth memory (HBM) production, strengthens the security of the U.S. semiconductor supply chain. As demand for AI-driven HBM chips grows, the project will support U.S.-based production, with SK hynix’s partnership with Purdue University further advancing research, development, and large-scale production of next-generation HBM technology.

SK hynix CEO Kwak Noh-Jung expressed his excitement, stating, "We look forward to working with the U.S. government, Indiana, Purdue University, and our U.S. business partners to build a resilient AI semiconductor supply chain in the United States."

In addition to the $458 million subsidy, the CHIPS program office will offer SK hynix up to $500 million in loans, as part of the $75 billion in loan authority granted under the CHIPS Act. This funding will further enhance U.S. semiconductor manufacturing and technological competitiveness.