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The U.S. Commerce Department announced that it plans to grant SK Hynix up to $450 million for building an advanced packaging plant and an R&D facility for AI products in Indiana.

In April, SK Hynix, the world's second-largest memory chip maker, revealed plans to invest approximately $3.87 billion to construct this facility in West Lafayette, Indiana. This site will feature an advanced production line for next-generation high-bandwidth memory chips, used in GPUs that train AI systems, according to the Nvidia supplier.

Additionally, the department plans to offer $500 million in government loans for the SK Hynix project, which is expected to qualify for a 25% investment tax credit.

The new memory packaging plant and R&D facility will create 1,000 jobs and address a critical gap in the U.S. semiconductor supply chain, the department stated.

In August 2022, Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing and related components, along with $75 billion in government lending authority.

Commerce Secretary Gina Raimondo said the department has issued term sheets with 15 companies, providing about $30 billion in funding that "will unlock another $300 billion of private capital."

The U.S. now has major commitments from all five leading-edge semiconductor manufacturers: TSMC, Intel, Samsung Electronics, Micron, and SK Hynix.

"This ensures the U.S. will have the most secure and diverse supply chain for advanced semiconductors that power AI," Raimondo said. The department noted that no other economy has more than two of these companies producing leading-edge chips domestically.

SK Hynix CEO Kwak Noh-Jung expressed gratitude for the Commerce Department's support and eagerness to see the project realized.

In May, the Commerce Department announced plans to award $75 million to Absolics for building a facility in Georgia to supply advanced materials to the U.S. semiconductor industry. Absolics is an affiliate of SKC, part of SK Group, which also includes SK Hynix.

Editor：Lulu

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