SK hynix Breaks Ground on First HBM Plant in Indiana, Mass Production Set for 2029

First U.S. HBM Production Base with $4 Billion Investment
R&D Collaboration with Purdue University; About 1,000 New Jobs
Korean-Made DRAM to Be Advanced-Packaged and Supplied in the U.S.

SK hynix is constructing a high-bandwidth memory (HBM) production base in Indiana, USA, marking a full-scale entry into the North American artificial intelligence (AI) semiconductor market. The company plans to package DRAMs produced in Korea using advanced technologies in the United States to complete them as HBM, which will be the first HBM production site in the country.

Kim Hyunjung, Head of the SK hynix Indiana Fab Project Construction Team, is explaining the SK hynix Advanced Packaging production site in West Lafayette, Indiana, USA. Indiana, USA - Photo by Yoonjoo Hwang

On August 27 (local time), SK hynix held a groundbreaking ceremony for its HBM Advanced Packaging Plant in West Lafayette, Indiana.

The Indiana Fab is SK hynix's first production facility to be built in the United States. The company will invest approximately $4 billion to establish production facilities and research & development (R&D) infrastructure. The cleanroom is scheduled to be completed in the second half of 2028, with mass production of next-generation HBM expected to begin in 2029.

At this site, advanced packaging processes—which stack and interconnect DRAM chips produced in Korea to complete them as HBM—will be carried out, alongside next-generation HBM research and development. While core production remains in Korea, advanced back-end processes, research and development, and supply to local customers will be handled in the United States.

HBM is high-performance memory formed by vertically stacking multiple DRAMs, dramatically increasing data processing speed. It is a core component for AI accelerators developed by global big tech companies such as Nvidia.

SK hynix is currently producing HBM4, the sixth generation of HBM, and is developing the next-generation product, HBM4E (seventh generation). Since mass production at the Indiana plant will begin in 2029, it is expected that the next-generation HBM, the main product at that time, will be manufactured there.

The establishment of an HBM supply chain within the United States is also significant. Leading U.S. big tech companies, including Nvidia, which dominate the global AI semiconductor market, will be able to procure SK hynix HBM packaged in the U.S.

This investment also aligns with the Trump Administration's initiative to expand domestic production of advanced industries such as semiconductors and AI.

Under the CHIPS Act, the U.S. government has decided to provide up to $450 million in direct subsidies and $500 million in loans to support SK hynix's investment in Indiana.

SK hynix is also working to strengthen its local research and development capabilities. The company has signed a memorandum of understanding (MOU) with Purdue University, which has competitive engineering programs, to collaborate in next-generation HBM development and testing. The plan is to secure research talent through cooperation with the university and play a role in fostering semiconductor professionals.

The site for the plant is also located near Purdue University in West Lafayette. Once the fab becomes fully operational, about 1,000 personnel specializing in production, engineering, and research and development will be employed there.

The groundbreaking ceremony was attended by SK hynix CEO and President Kwak Nojeong, South Korean Ambassador to the United States Kang Kyung-wha, Indiana Governor Mike Braun, Republican U.S. Senator Todd Young, and others.

This content was produced with the assistance of AI translation services.