Nvidia Supplier SK Hynix to Launch $4B Semiconductor Facility in Indiana, Aims to Revitalize US Semiconductor Manufacturing
SK Hynix plans to invest approximately $4 billion to establish an advanced chip-packaging facility in West Lafayette, Indiana, marking a significant step towards bolstering America’s semiconductor industry. This investment aligns with the Biden administration’s goals to reestablish the U.S. as a semiconductor powerhouse.
Located near Purdue University, known for its extensive semiconductor and microelectronics-engineering programs, the facility will likely generate between 800 – 1,000 jobs, with a combination of state and federal incentives expected to support the project’s financing, the Wall Street Journal reports.
Operations will likely begin in 2028, contingent upon SK Hynix’s board approval.
As a significant player in the global semiconductor market, SK Hynix’s decision to expand its operations in the U.S. reflects the company’s success in the high-bandwidth memory (HBM) sector, where it serves as the exclusive partner to Nvidia Corp (NASDAQ:NVDA) for its most advanced graphic-processor units.
In 2023, Nvidia bagged HBM supply for 2024 GPUs with billion-dollar payments to SK Hynix and Micron Technology, Inc (NASDAQ:MU).
Meanwhile, geopolitical tensions between the U.S. and China intensified as the former slapped a semiconductor embargo on the Asian counterpart, restricting the import of niche artificial intelligence technology from the likes of Nvidia and Advanced Micro Devices, Inc (NASDAQ:AMD).
Recent reports indicated China retaliated with new guidelines to eliminate U.S. microprocessors from Intel Corp (NASDAQ:INTC) and AMD in government computers and servers, favoring domestic technology.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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