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Area Development - Site Selection, Facility Planning and Workforce Development

South Korea-Based SK Hynix Plans West Lafayette, Indiana, Chip Fabrication-Research Operations

04/08/2024
South Korea-based SK hynix Inc. plans to establish operations at the Purdue Research Park in West Lafayette, Indiana. The approximately $4 billion project is expected to create up to 800 jobs by the end of 2030.

The investment will include the construction of a new packaging fabrication and R&D facility which will be home to an advanced semiconductor packaging production line that will mass-produce next-generation high-bandwidth memory, or HBM, chips, the critical component of graphic processing units that train AI systems such as ChatGPT. Production is scheduled for the second half of 2028.

“We are excited to build a state-of-the-art advanced packaging facility in Indiana,” said SK hynix CEO Kwak Noh-Jung. “We believe this project will lay the foundation for a new Silicon Heartland, a semiconductor ecosystem centered in the Midwest Triangle. This facility will create local, high-paying jobs and produce AI memory chips with unmatched capabilities, so that America can onshore more of its critical chip supply chain. We are grateful for the support of Gov. Holcomb and the state of Indiana, of President Chiang at Purdue University, and of the broader community involved, and we look forward to expanding our partnership in the long run.”

Based on the company’s phase one investment plans, the Indiana Economic Development Corporation (IEDC) committed an investment in SK Hynix of up to $3 million in incentive-based training grants, up to $3 million in Manufacturing Readiness Grants, and up to $80 million in conditional structured performance payments. Additionally, the IEDC offered up to $554.7 million of Innovation Development District tax rebates with the flexibility for the project to grow to $4.644 billion in capital investment. The IEDC also committed up to $45 million through the Industrial Development Grant Fund to support infrastructure improvements surrounding the new plant. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made.?

“Indiana is a global leader in innovating and producing the products that will power our future economy, and today’s news is proof positive of that fact,” noted Indiana Governor Eric Holcomb. “I’m so proud to officially welcome SK hynix to Indiana, and we’re confident this new partnership will enhance the Lafayette-West Lafayette region, Purdue University and the state of Indiana for the long term. This new semiconductor innovation and packaging plant not only reaffirms the state’s role in the hard-tech sector, but is also another tremendous step forward in advancing U.S. innovation and national security, putting Hoosiers at the forefront of national and global advancements.”

The City of West Lafayette, City of Lafayette and Tippecanoe County, as well as Duke Energy offered additional incentives. The Purdue Research Foundation and Purdue University offered additional incentives and in-kind services valued at approximately $60 million, including discounted land pricing for 90 acres with an option to expand on an additional 30 acres, to support production, R&D, and talent and supply chain development.

“SK hynix is the global pioneer and dominant market leader in memory chips for AI,” Purdue President Mung Chiang said. “This transformational investment reflects our state and university’s tremendous strength in semiconductors, hardware AI and development of the Hard-Tech Corridor. It is also a monumental moment for completing the supply chain of the digital economy in our country through the advanced packaging of chips. Located at Purdue Research Park, the largest facility of its kind at a U.S. university will grow and succeed through innovation.”

SK hynix Inc., headquartered in Korea, is a semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND?flash”)?and CMOS Image Sensors (“CIS”) for a wide range of industries. Founded as Hyundai Electronic Industrial Co., Ltd.and known as Hyundai Electronics, the company has manufacturing sites in Korea, the U.S., mainland China, and Taiwan. In 2012, Hynix merged with SK Group.

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