SK hynix to Invest More Than $4 Billion in U.S. AI Memory Facility
In West Lafayette, Indiana, South Korean chipmaker SK hynix broke ground on an advanced packaging facility costing over $4 billion.
BUSINESSES RESHAPING OUR WORLD
Global N Press
8/30/20262 min read
WEST LAFAYETTE, Ind., Aug. 28, 2026 — South Korean semiconductor maker SK hynix has broken ground on an advanced packaging facility in West Lafayette, Indiana, with an investment of more than $4 billion. The project marks the company's first U.S. production base dedicated to high-bandwidth memory (HBM) for artificial intelligence applications.
Located at Purdue Research Park, the facility is intended to expand U.S. capacity for advanced memory packaging and strengthen the semiconductor supply chain serving AI data centers and high-performance computing. SK hynix plans to complete the cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029.
First U.S. HBM Production Base
The Indiana facility will focus on advanced packaging and testing rather than wafer fabrication. SK hynix plans to ship wafers produced in South Korea to Indiana for further processing, linking its Korean wafer manufacturing operations with packaging and testing in the United States.
The company expects the site to become a major U.S. HBM production hub by 2030. Once operational, the facility is expected to employ about 1,000 people directly, while the broader project is projected to generate about 7,000 direct and indirect jobs during construction and operations.
SK hynix also plans to establish an advanced packaging research and development center at the site. The center is expected to bring together customers, universities and industry partners to develop packaging technologies and test prototypes.
Growing Demand for AI Memory
HBM is a key component in AI accelerators because of its high memory bandwidth and ability to handle large volumes of data processed by advanced computing systems. Demand has increased rapidly as technology companies expand AI data centers and deploy increasingly powerful processors.
SK hynix is one of the world's leading HBM suppliers. The Indiana investment will place part of its advanced packaging and testing operations closer to major U.S. customers while maintaining wafer production in South Korea.
The company has forecast that tight memory supply could persist through 2030 as AI infrastructure expands. That projection reflects SK hynix's own assessment and does not necessarily represent an independent industry consensus.
U.S. Government and Research Support
The project is receiving support under the U.S. CHIPS and Science Act. According to Reuters, the U.S. government has committed $458 million in grants and up to $500 million in loans for the investment.
SK hynix has also signed a memorandum of understanding with Purdue University to cooperate on advanced packaging and system integration research, as well as semiconductor workforce development.
The company said more than 100 companies are being considered as suppliers and partners for the facility, which could contribute to the development of a broader semiconductor ecosystem in Indiana.
Expanding the U.S. Semiconductor Supply Chain
The investment comes as governments and semiconductor companies seek to diversify supply chains and expand domestic capabilities in strategically important technologies.
For SK hynix, the Indiana facility will provide a U.S.-based packaging and testing link to the world's largest AI hardware market while allowing the company to retain wafer production in South Korea. For the United States, the project adds domestic capacity in advanced packaging and AI memory, two increasingly important segments of the semiconductor supply chain.
The facility is not intended to replace SK hynix's Korean manufacturing operations. Instead, it will connect wafer production in South Korea with packaging, testing and research activities in the United States as demand for AI computing infrastructure continues to grow.
