The United States Department of Commerce recently announced a preliminary agreement with SK hynix, the world's leading memory chip manufacturer, to provide up to $450 million in direct funding and $500 million in additional loans to support the production of high-bandwidth memory (HBM) and research and development of advanced packaging technologies. The partnership aims to secure United States' supply chains in the field of artificial intelligence (AI) and create more than 800 new jobs in Indiana.
Previously, SK hynix announced in April 2024 that it plans to invest nearly USD 4 billion to build an advanced AI product packaging manufacturing and R&D facility at the Purdue Research Campus in West Lafayette, Indiana. The new facility will be equipped with an advanced semiconductor packaging production line to mass-produce the critical next-generation HBM chips that are the core components of the graphics processing unit used to train AI systems such as ChatGPT.
Purdue University President Mung Chiang welcomed the United States Department of Commerce's support for the establishment of a large-scale semiconductor manufacturing facility at the university through the CHIPS and Science Act. He believes that SK hynix's global leadership in AI memory chips will make the facility have a transformative impact. As a leading university in foundational technologies, Purdue University is committed to creating jobs, developing the workforce, and driving innovation in the state and Silicon Valley.
Pictured: The United States Department of Commerce provides funding to SK hynix's memory chip factory
The next-generation chips are expected to have more processing power and higher performance, capable of processing up to 1.18 megabytes of data per second, equivalent to the data volume of 230 Full HD movies. United States Commerce Secretary Gina · Raimondo said the partnership with SK hynix will further solidify United States' leadership in the AI hardware supply chain, unmatched by any other country.
SK hynix CEO Kwak Noh-Jung said the company is advancing the construction of a production base in Indiana and working with local government, Purdue University and United States business partners to eventually supply cutting-edge AI memory products from West Lafayette. Currently, the world's five largest semiconductor manufacturers have factories in the United States, including SK hynix in West Lafayette.
Indiana Governor Eric Holcomb said Indiana is a global leader in innovating and producing products needed for the economy of the future. He emphasized that supporting SK hynix's program work in West Lafayette is further proof of Indiana's critical role in the national and economic security arena. Purdue University Research Park was chosen as the location of SK hynix due to its combination of discovery and delivery, as well as its convenient transportation links.
This partnership not only strengthens Indiana's leadership position in the semiconductor industry, but also strengthens Purdue University as a key partner for innovative high-tech companies. Brian Edelman, president of the Purdue Research Foundation, said that semiconductors and microelectronics are the foundation's key focuses, and he looks forward to fostering an innovation ecosystem that supports high-tech companies to excel in Indiana.
