SK Hynix to Receive $450 Million U.S. Subsidy for Indiana Plant

Direct Subsidy $450 Million
Loan $500 Million
Tax Benefit 25%

SK Hynix will receive subsidies worth up to $405 million from the U.S. government.

On the 6th (local time), the U.S. Department of Commerce announced that it had signed a preliminary memorandum of transaction (PMT) to provide up to $450 million in direct subsidies and $500 million in loans based on the U.S. CHIPS and Science Act (CSA) for SK Hynix's investment in its semiconductor packaging production facility in Indiana.

Along with this, the U.S. Department of the Treasury has agreed to offer tax benefits of up to 25% of the amount SK Hynix invests in the U.S.

SK Hynix expressed its deep gratitude for the support from the U.S. government and stated, "We will do our utmost to comply with the remaining procedures until the subsidies are finally confirmed."

Furthermore, SK Hynix plans to proceed with construction work to ensure the smooth mass production of artificial intelligence (AI) memory products at the Indiana production facility.

Earlier in April, SK Hynix announced plans to invest $3.87 billion to build an advanced packaging production facility in Indiana, creating about 1,000 jobs and collaborating on semiconductor research and development (R&D) with local research institutions such as Purdue University.