[Interview] Senator Todd Young: "SK hynix to Further Expand Investments in Indiana"

Proposal for Biotech Investment to SK Group

"Direct Discussion with Chairman Chey Taewon"

Todd Young, the U.S. Republican Senator from Indiana who led the enactment of the 'CHIPS and Science Act (CSA)' aimed at fostering the U.S. semiconductor industry, predicted that SK hynix would further expand its investment in Indiana.

Todd Young, U.S. Senator for Indiana, held a Q&A session with reporters after attending the groundbreaking ceremony for SK hynix's Advanced Packaging Production Facility in West Lafayette, Indiana on the 27th (local time). West Lafayette, USA – Photo by Yoonju Hwang

On the 27th (local time), at the groundbreaking ceremony for the SK hynix next-generation High Bandwidth Memory (HBM) advanced packaging plant held in West Lafayette, Indiana, Senator Young responded to reporters' questions about whether he expects SK hynix to expand its investments in Indiana, saying, "They will."

He emphasized, "I say this with a fair degree of confidence and certainty—SK hynix will increase its investments in Indiana," adding, "The 4 billion dollars is just the initial investment."

He also remarked, "Every time new technologies emerge and production levels must be increased, there will be expansions of the fab. New personnel will be hired, new facilities will be added, and at the same time, existing facilities will be upgraded."

SK hynix is investing over 4 billion dollars in West Lafayette to build the first HBM advanced packaging production facility and research and development (R&D) center in the United States. The company plans to complete the cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029. The direct and indirect employment impact is expected to be around 7,000 jobs.

"Expecting Additional Investments From SK Group"

In particular, Senator Young revealed that he expects not only SK hynix but also additional investments from SK Group itself. He stated, "I hope that not only SK hynix but also SK Group, a large business group, will invest some of its considerable resources in Indiana." He added, "While biotechnology and perhaps even shipbuilding are possibilities, I am especially anticipating investments in biotechnology."

He also disclosed that he had directly discussed this with Chey Tae-won, Chairman of SK Group. Senator Young said, "A few years ago, I had dinner with Chairman Chey in Korea, where we spoke in person, and Chairman Chey also expressed strong interest."

However, he drew a line at the idea that a specific investment project is currently underway. In response to further questions, Senator Young said, "There is no new information regarding investments to be announced soon," but added, "Every time I speak with SK Group, I make it clear that Indiana is ready for investment."

He emphasized Indiana's strengths in the biotechnology industry, saying, "The state is home to world-class biopharmaceutical companies, has strengths in agricultural biosciences and veterinary medicine, and is also supported by Purdue University and Indiana University (IU)." He further stated, "Ultimately, Indiana state officials, including the governor, should actively highlight these strengths to Korea."

"U.S. Semiconductor Independence Is Not the Goal of the CSA ... Expanding Supply Chains With Allies Like Korea"

Todd Young, U.S. Senator from Indiana, delivered a congratulatory speech on the 27th (local time) at the groundbreaking ceremony of SK hynix's West Lafayette advanced packaging production facility held at Purdue University in Indiana. SK hynix

Regarding criticism that the U.S. government is pressuring companies to expand investment across all semiconductor processes within the country, he explained that back-end processes are also essential to the U.S. semiconductor ecosystem.

Senator Young said, "For a long time, the United States failed to pay attention to the importance of economic security and the need for sufficient domestic semiconductor component production." He continued, "As a result, we found ourselves in a position of having to rebuild nearly the entire semiconductor ecosystem within the U.S."

He added, "Packaging is also a crucial area, and I would even say it absolutely needs investment," and continued, "At the same time, investments must be made across all other areas as well."

However, he emphasized that the goal of the CSA is not for the U.S. to be completely independent from the global semiconductor supply chain. Senator Young said, "It was never the superficial goal of the CSA to be independent from the rest of the world," and went on to say, "It was both a foreign policy and a diplomatic strategy."

Korea-U.S. Relations Will Only Grow Stronger

He also made an optimistic forecast regarding Korea-U.S. relations. Senator Young stated, "The relationship between the U.S. and Korea is very strong and will become even stronger in the future." He added, "The two countries share many common concerns and risks around the world, and have a long-standing friendship."

He also praised the Trump Administration's execution of the CSA, saying, "The administration is doing an excellent job keeping the program on track." He commented, "Even under the Trump Administration, the CHIPS program has continued to proceed successfully."

Additionally, Senator Young predicted that Congress would soon discuss an extension of the Advanced Manufacturing Investment Credit (48D), which is set to expire at the end of this year. He noted, "Congress must continue to monitor the implementation progress of the CSA," and added, "One of the major topics currently being discussed at the program level is whether it will be necessary to extend the investment tax credit."

Currently, the 48D provides a 35% tax credit for qualifying investments in semiconductor and semiconductor equipment production facilities within the United States. However, under current law, facilities breaking ground after December 31 of this year will be excluded. Recently, the leadership of the U.S. Senate Finance Committee has announced a bipartisan intention to extend the program.

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