SK Hynix starts construction of $5 billion memory hub in US state of Indiana
The project is expected to create about 7,000 direct and indirect jobs.
On August 27, South Korean chipmaker SK Hynix broke ground on a $5 billion advanced memory packaging facility in West Lafayette, Indiana. The 54-hectare site will be the company's first HBM packaging base in the United States. SK Hynix CEO Kwak Noh-jung announced that clean room operations would commence by October 2028, while mass production of next-generation HBM is slated to begin in the second half of 2029.
Upon completion, the facility will create around 1,000 jobs and be a key HBM hub essential for the AI hardware boom. The West Lafayette project is supported by the US Chips and Science Act, which allocated up to $458 million in direct funding and up to $500 million in loans to the South Korean chipmaker. Kwak emphasized that the Indiana investment would bolster a domestic AI chip supply chain and position SK Hynix as a trusted partner in shaping the future of AI in America.
The Indiana investment specifically targets advanced packaging, which combines multiple chips into a single package to enhance performance. SK Hynix will ship wafers produced in South Korea to Indiana for packaging and testing before distributing them to US customers. The plant is expected to generate about 7,000 direct and indirect jobs during construction, operations, and related industries.
SK Hynix is currently assessing over 100 potential partners for supplying materials, components, and equipment, which could lead to a broader semiconductor cluster. The company also signed an agreement with nearby Purdue University to collaborate on HBM, system integration, and advanced packaging research. As part of its commitment to Indiana's historic ties with South Korea – the state sent approximately 140,000 troops to the Korean War – SK Group pledged to provide new employment and career opportunities for former US Forces Korea service members.
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