SK Hynix to build first US HBM production facility in Indiana

SK Hynix is set to establish its first High Bandwidth Memory (HBM) production facility in the United States, marking a significant step in bolstering the domestic AI semiconductor supply chain. The South Korean chipmaker announced an investment exceeding $4 billion to construct the advanced packaging plant in West Lafayette, Indiana. This facility is designed to produce hundreds of thousands of HBM wafers annually, with mass production of 'Made in USA' HBM scheduled to commence in the second half of 2029.

The groundbreaking ceremony for the advanced packaging plant took place at Purdue University's Holloway Gymnasium. This facility represents SK Hynix's inaugural production base in the U.S. Construction of the cleanroom is expected to be completed by October 2028, paving the way for HBM production to begin in the latter half of the following year. Beyond manufacturing, the site will also house a research and development testbed for developing next-generation packaging technologies, prototyping, and performance verification.

Kwak No-jung, President and CEO of SK Hynix, emphasized the facility's pioneering role during the ceremony. "This is the first time we are building an advanced packaging facility in the United States," Kwak stated, outlining plans to start production in the third quarter of 2029 with an annual capacity of hundreds of thousands of wafers. This initiative will create an integrated production system linking South Korea and the U.S., where advanced DRAM wafers produced in Korea will be shipped to Indiana for stacking, packaging, and testing before being supplied to U.S. customers.

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This is the first time we are building an advanced packaging facility in the United States. We plan to start production in the third quarter of 2029 and have an annual capacity of hundreds of thousands of wafers.

Kwak further highlighted the collaborative aspect, calling it "a day when the U.S. and SK Hynix begin a new future for artificial intelligence together." The company also pledged to expand its U.S. investments and collaborations. The Indiana plant's significance lies in moving the final stage of HBM production, advanced packaging, to the U.S., aligning with the nation's industrial policy to strengthen its AI and semiconductor supply chain. However, it's noted that the DRAM wafers themselves will still be produced in South Korea, differentiating it from U.S. government initiatives focused on front-end semiconductor manufacturing.

SK Hynix also signed a Memorandum of Understanding (MOU) with Purdue University to jointly research HBM system integration and advanced packaging technologies. The company estimates that the Indiana facility will create approximately 1,000 jobs in manufacturing, engineering, and R&D. Additionally, over 100 material, component, and equipment suppliers are reportedly discussing setting up operations in West Lafayette, potentially generating around 7,000 direct and indirect jobs when considering construction and supplier activities. The event also notably honored three Korean War veterans, symbolizing the expansion of U.S.-South Korea relations from military and security cooperation to advanced industries and workforce collaboration.

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This is a day when the U.S. and SK Hynix begin a new future for artificial intelligence together.