Investment Agreement Signed in Advanced Post-Processing Sector
Mass Production Targeted for Second Half of 2028
Semiconductor R&D with Purdue University
Expecting US Government Subsidy Benefits
SK Hynix announced on the 4th that it will invest $3.87 billion (approximately 5.2 trillion KRW) to build an Advanced Packaging (AVP) production facility for artificial intelligence (AI) memory in West Lafayette, Indiana, USA, and collaborate with local research institutions such as Purdue University on semiconductor research and development (R&D).
On the 3rd local time in the US, SK Hynix held an investment agreement ceremony at Purdue University in West Lafayette with representatives from the state of Indiana, Purdue University, and the US government, announcing these plans.
SK Hynix stated, "We plan to mass-produce next-generation High Bandwidth Memory (HBM) and other AI memory products starting in the second half of 2028 at the Indiana plant," adding, "Through this, we will take the lead in revitalizing the global AI semiconductor supply chain." They also added, "Based on the production facility and R&D center being built in Indiana, we will create more than 1,000 jobs locally and contribute to the development of the community."
The agreement ceremony was attended by Indiana Governor Eric Holcomb, US Senator Todd Young (Indiana), Arati Prabhakar, Director of the White House Office of Science and Technology Policy, Arun Venkataraman, US Deputy Secretary of Commerce, David Rosenberg, Indiana Secretary of Commerce, and Purdue University President Mung Chiang. From the Korean government, Ambassador Cho Hyun-dong to the US and Consul General Kim Jeong-han in Chicago attended. SK Group executives including Yoo Jung-joon, Vice Chairman in charge of External Cooperation in the Americas, SK Hynix CEO Kwak No-jeong, and Vice President Choi Woo-jin (in charge of P&T) were also present.
SK Hynix decided to invest in advanced back-end process technology in the US to strengthen its technological leadership and has been searching for the optimal location. The US met the necessary conditions as it hosts many big tech AI customers and actively conducts advanced back-end process technology research. Additionally, the surge in demand for ultra-high-performance memory such as HBM since the AI era began last year and the growing importance of AVP were also considered.
After reviewing various candidate sites within the US, SK Hynix ultimately selected Indiana as the investment location. The state government's active efforts to attract investment and the abundant manufacturing infrastructure necessary for semiconductor production in the region played a significant role. The presence of Purdue University, renowned for advanced engineering research including semiconductors, also received high marks.
Governor Holcomb said, "Indiana is a global leader creating innovative products that will drive the future economy," and added, "I am confident that this new partnership with SK Hynix will contribute to the long-term development of Indiana, Purdue University, and the local community."
President Mung stated, "SK Hynix is a global pioneer and dominant market leader in AI memory," and said, "This innovative investment demonstrates the advanced semiconductor competitiveness of Indiana and Purdue University and marks a milestone in completing the digital supply chain within the US."
CEO Kwak emphasized, "We are pleased to be the first in the semiconductor industry to build an AI AVP production facility in the US. Through this investment, we will supply customized memory products that meet the increasingly sophisticated demands and expectations of our customers."
Meanwhile, SK Hynix plans to establish partnerships with Indiana and the local community for regional development and support activities of the Purdue Research Foundation, local nonprofits, and charitable organizations. Domestic investments will also proceed without delay. The semiconductor cluster in Yongin, where a production facility is being built with an investment of 120 trillion KRW, is currently undergoing site development. The company plans to start construction of the first fab there in March next year, complete it by early 2027, and build a mini fab to support technology development, demonstration, and evaluation for small and medium-sized enterprises in materials, parts, and equipment (SoBuJang). The mini fab is a research facility equipped with 300mm wafer processing equipment for demonstrating semiconductor materials, parts, and equipment.
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