Kwack No-jeong, President of SK Hynix, Delivers Keynote Speech in the US
Announces Strengthening HBM Competitiveness with Advanced Packaging Facilities
SK Hynix Applies for Subsidies... Announcement Expected Within the Year
"I am confident that this (U.S.) investment can realize the aspirations of SK Hynix, Purdue University, and the state of Indiana."
On the 17th (local time), Kwak No-jeong, President of SK Hynix, made this remark as a keynote speaker at the "Chips for America, Execution for Global Success" event held in Washington D.C., USA.
The event was hosted by Purdue University in Indiana and Senator Todd Young, who represents a district in the state. Industry, academia, and government officials gathered to discuss ways to strengthen the U.S. semiconductor economic power. Senator Young was involved in the enactment of the CHIPS and Science Act (CSA), which provides subsidies to companies investing in the U.S.
On that day, President Kwak presented the company's business direction and U.S. investment plans under the theme "Partnership for Global Success in the AI Era."
He explained that the potential of AI technology, which is just beginning to emerge, is limitless, and that SK Hynix is continuously developing advanced technologies to meet market demand in areas such as generative AI. He also introduced the company’s U.S. investment plans, emphasizing efforts to expand manufacturing capabilities needed for the future.
Earlier, SK Hynix announced it would invest $3.87 billion in West Lafayette, Indiana, to establish advanced packaging and research and development (R&D) facilities. The plan to produce high-bandwidth memory (HBM), a memory semiconductor for AI, starting in the second half of 2028 through the advanced packaging facility was also concretized. Additionally, SK Hynix plans to gain momentum in R&D by collaborating with local research institutions such as Purdue University. Purdue is renowned for its advanced engineering research in semiconductors and is expected to assist in local workforce supply.
Based on this investment, SK Hynix has applied for subsidies from the U.S. Department of Commerce. In the semiconductor industry, considering previous subsidy announcements for Samsung Electronics, Taiwan’s TSMC, and U.S. Intel, the pure subsidy ratio excluding loan support is expected to be around 10% of the investment amount.
The subsidy announcement could be made within this year. On the 15th, prior to this, U.S. Secretary of Commerce Gina Raimondo said in an interview with local media that "(the subsidy payment process) is progressing smoothly," and "All funds under the CHIPS Act are expected to be allocated by the end of this year."
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