The $3.9 billion facility targets next-gen HBM for AI by 2028
A rendering of the advanced semiconductor packaging plant SK hynix will build in West Lafayette, Indiana. (Photo provided by SK hynix)
SK hynix has officially commenced construction on its US semiconductor production base, a project valued at 5.7 trillion won (approximately $3.9 billion). The Indiana fab, SK hynix’s first semiconductor plant in the US, has broken ground. This comes two years after the announcement of its 2024 investment plan, and is expected to add momentum to the global supply of artificial intelligence (AI) semiconductors.
According to industry sources on April 21, SK hynix notified the local community in Indiana on April 17 (local time) that it would begin piling work. Piling is a foundational process of driving stakes into the ground before framework construction, and given the company’s statement that piling will continue for several months, the superstructure is expected to begin rising in the second half of the year.
SK hynix had announced in 2024 that it would invest approximately $3.87 billion to build an advanced packaging production base for AI memory on a 138-acre (approximately 560,000 square meters) site in Indiana. Full-scale operations are scheduled to begin in the second half of 2028, with mass production expected to focus on AI memory products such as next-generation High Bandwidth Memory (HBM). According to its roadmap, there is a high probability that 7th and 8th generation High Bandwidth Memory (HBM4E·HBM5) will be the primary products.
SK hynix’s strategy is to respond to the surging demand for memory through an AI memory ecosystem that extends from its triangular axis (Icheon, Cheongju, Yongin) to Indiana. The Indiana plant, located in a state home to Purdue University, which launched the first semiconductor degree program in the US, is also well-positioned for collaboration with global clients, local research institutions, and partners.
At the investment agreement ceremony in 2024, SK hynix CEO Kwak Noh-jung had stated, “We are pleased to build the semiconductor industry’s first advanced packaging production facility for AI in the United States,” adding, “Through this investment, we will continue to supply customized memory products that meet the increasingly sophisticated demands and expectations of our customers.”
Due to the nature of HBM, which involves vertically stacking layers of DRAM, packaging is emerging as a key technology that determines HBM’s yield and performance. Lee Kang-wook, Vice President and Head of Packaging Development at SK hynix, had emphasized, “Packaging capability is a key factor that determines a company’s survival and defines its corporate value.
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