SK Hynix plans to invest approximately $4 billion to establish an advanced chip-packaging facility in West Lafayette, Indiana, marking a significant step towards bolstering America’s semiconductor industry. This investment aligns with the Biden administration’s goals to reestablish the U.S. as a semiconductor powerhouse.
Located near Purdue University, known for its extensive semiconductor and microelectronics-engineering programs, the facility will likely generate between 800 – 1,000 jobs, with a combination of state and federal incentives expected to support the project’s financing, the Wall Street Journal reports.
Operations will likely begin in 2028, contingent upon SK Hynix’s board approval.
As a significant player in the global semiconductor market, SK Hynix’s decision to expand its operations in the U.S. reflects the company’s success in the high-bandwidth memory (HBM) sector, where it serves as the exclusive partner to Nvidia Corp NVDA for its most advanced graphic-processor units.
In 2023, Nvidia bagged HBM supply for 2024 GPUs with billion-dollar payments to SK Hynix and Micron Technology, Inc MU.
Meanwhile, geopolitical tensions between the U.S. and China intensified as the former slapped a semiconductor embargo on the Asian counterpart, restricting the import of niche artificial intelligence technology from the likes of Nvidia and Advanced Micro Devices, Inc AMD.
Recent reports indicated China retaliated with new guidelines to eliminate U.S. microprocessors from Intel Corp INTC and AMD in government computers and servers, favoring domestic technology.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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