The Department of Commerce has awarded SK Hynix $458 million in direct funding for the company’s project to build an advanced memory packaging plant in West Lafayette, Indiana.
The funding will support the South Korean company’s $3.87 billion investment to establish a facility for artificial intelligence products, advanced packaging fabrication, and chip research and development efforts, the National Institute of Standards and Technology said Thursday.
AI Hardware Supply Chain
Secretary of Commerce Gina Raimondo noted that the federal investment will strengthen the U.S. AI hardware supply chain, generate hundreds of new jobs and ensure that Indiana will play a critical role in advancing the country’s economic and national security.
“By investing in companies like SK Hynix and communities like West Lafayette, the bipartisan CHIPS and Science Act continues to supercharge America’s global technology leadership,” she added.
Domestic HBM Manufacturing Capacity
Funded by the CHIPS and Science Act, the investment will bring high-bandwidth memory, a.k.a. HBM, manufacturing capacity to the United States, courtesy of SK Hynix, according to NIST. The project is estimated to create over a thousand new jobs in Indiana and promote partnerships. Specifically, the company will work with Purdue University to research, develop, produce and package HBMs within the United States.
Apart from the direct funding, whose disbursement will be determined by construction, technology, production and commercial milestones, the CHIPS Program Office will also provide up to $500 million in loans to SK Hynix.
