SK Hynix to Begin Construction of US Semiconductor Packaging Plant Next Year

Foreign Media: "Site Selection and Groundbreaking for US Semiconductor Packaging Plant to Proceed Next Year"
SK Hynix: "No Decision Made, Under Review"

[Asia Economy Reporter Kim Pyeonghwa] There are claims that SK Hynix could select the site and begin construction of a semiconductor packaging plant in the United States in the first quarter of 2022. SK Hynix stated that no decisions have been made.

According to foreign media on the 12th (local time), SK Hynix will proceed with selecting a site for a semiconductor packaging plant in the U.S. in the first quarter of next year. Mass production is scheduled for 2025 to 2026. It is expected that about 1,000 employees could be hired at the plant.

The foreign media cited multiple sources to report this news. There is also speculation that the plant could be built near related universities to attract talent in the engineering field.

Earlier, on July 26, SK Group Chairman Chey Tae-won announced a new investment plan worth $22 billion (approximately 29 trillion KRW) during a video meeting with U.S. President Joe Biden. In this process, he also revealed plans to establish an advanced memory semiconductor packaging manufacturing facility.

SK Hynix, a subsidiary of SK Group, plans to invest a total of $15 billion (approximately 19 trillion KRW) out of the total $22 billion investment in advanced packaging manufacturing and semiconductor-related research and development (R&D). Packaging refers to the technology of enclosing semiconductor chips on wafers etched with circuits in a form that allows electronic devices to communicate signals with each other.

The semiconductor industry expects that if SK Hynix builds a semiconductor packaging plant in the U.S., it will receive tax benefits under the U.S. CHIPS and Science Act. The act aims to invest $280 billion (approximately 366 trillion KRW) to develop the U.S. semiconductor industry and maintain technological superiority. Companies building semiconductor plants in the U.S. are eligible for a 25% tax credit.

SK Hynix stated that the related plans are undecided and no decisions have been made regarding these reports. An SK Hynix official said, "Nothing has been decided yet, and it is currently under review."