The United States will provide $450 million of proposed federal incentives to SK Hynix for its project to build a high-bandwidth memory — or HBM — packaging fabrication and research and development facility in Indiana.
Under the preliminary memorandum of terms signed by the two parties, the federal incentive will support the South Korean chipmaker’s $3.87 billion investment to establish an advanced memory packaging plant for artificial intelligence products on U.S. soil, the Commerce Department said.
According to Arati Prabhakar, a former Wash100 Award winner and director of the White House Office of Science and Technology Policy, the incentive from CHIPS and Science Act will bolster the U.S. computing systems.
She noted that “advanced packaging is more and more critical for AI and other leading-edge systems.”
SK Hynix will build the manufacturing facility at the Purdue University Research Park in West Lafayette, Indiana. The company aims to mass-produce HBMs at the site starting in the second half of 2028.
Secretary of Commerce Gina Raimondo said the federal initiative will generate hundreds of new jobs in Indiana and highlight the state’s role in advancing U.S. national security and supply chains.
The facility’s operation is expected to create approximately 1,000 jobs in the area.