SK hynix has inked a memorandum of understanding with the U.S. Department of Commerce to secure up to $450 million in direct funding and access to $500 million in loans under the CHIPS and Science Act to build its advanced memory packaging facility in West Lafayette, Indiana. If the project becomes a success, then the U.S. will have its own supply of high-bandwidth memory (HBM), which is crucial for AI and HPC processors.
If SK hynix proceeds with its project, the advanced packaging facility is set to begin operations in 2028 and will generate up to 1,000 jobs. With an estimated cost of $3.87 billion, this plant will rank among the largest advanced packaging facilities worldwide. But the project is impossible to complete without U.S. government support of up to $450 million in direct funding and access to $500 million in loans. Additionally, SK hynix intends to seek a tax benefit of up to 25% of the qualified capital expenditures through the Investment Tax Credit program.
