SK Hynix to start AI chip output in Indiana in 2029, sees memory shortage through 2030

South Korean chipmaker SK Hynix announced plans to commence production of its next-generation HBM4E chips at a facility in Indiana, United States, in the third quarter of 2029, according to an announcement made on Thursday. SK Hynix's CEO, Kwak Noh-Jung, stated that the company anticipates a memory chip shortage to endure until the end of 2030.

The ambitious project, valued at over $4 billion, represents a significant expansion of SK Hynix's U.S. operations, driven by rising demand for high-bandwidth memory (HBM) due to the growing investment in artificial intelligence. The facility, located at the Purdue Research Park in West Lafayette, is slated to initiate cleanroom operations in the second half of 2028.

HBM, a specialized memory chip that stacks vertically to facilitate faster data processing with lower power consumption, is particularly well-suited to the intense computing needs of AI applications. SK Hynix aims to establish a robust advanced memory supply chain in the United States, with the facility expected to eventually produce hundreds of thousands of wafers annually.

The company sees no clear signs of a memory downturn and believes that any eventual slowdown would likely involve a moderating rather than a sharp decline in demand. By 2030, SK Hynix foresees Indiana becoming a crucial HBM production base in the United States.