[News] SK hynix Secures up to USD 450 Million Funding for Indiana Packaging Facility under CHIPS Act

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SK hynix, the current High Bandwidth Memory (HBM) market leader, announced on August 6^th that it has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to USD 450 million in proposed direct funding and access to proposed loans of USD 500 million as part of the CHIPS and Science Act. The funding, according to its press release, will be used to build a production base for semiconductor packaging in Indiana.

Earlier in April, the other two memory giants, Samsung and Micron, have secured funds under the CHIPS and Science Act as well, receiving USD 6.4 billion and USD 6.1 billion, respectively.

SK hynix also noted in its press release that it plans to seek from the U.S. Department of the Treasury a tax benefit equivalent of up to 25% of the qualified capital expenditures through the Investment Tax Credit program.

The South Korean memory chip maker also said that it will proceed with the construction of the Indiana production base as planned to provide AI memory products. Through this, it looks forward to contributing to build a more resilient supply chain of the global semiconductor industry.

The signing follows SK hynix’s announcement in April that it plans to invest USD 3.87 billion to build a production base for advanced packaging in Indiana in a move expected to create around 1,000 jobs. According to a previous report by The Wall Street Journal, the advanced packaging fab it is expected to commence operations by 2028.

As the major HBM supplier of AI giant NVIDIA, SK hynix has good reason to accelerate the pace of capacity expansion. The recent NVIDIA Blackwell B200, with each GPU utilizing 8 HBM3e chips, has also underscored SK hynix’s role in the critical components supply chain for the AI industry.

On the other hand, a week earlier, semiconductor equipment leader Applied Materials was said to be rejected for funding under the CHIPS act for a R&D center in Silicon Valley, which targets to develop next-generation chipmaking tools. It has tried to gain U.S. funding for a USD 4 billion facility in Sunnyvale, California, which was slated to be completed in 2026.

Read more

• [News] SK Hynix Reportedly Plans to Invest USD 4 Billion in Advanced Packaging Fab in Indiana
• [News] Samsung Receives USD 6.4 Billion Subsidy from US Government, Less than Intel and TSMC

(Photo credit: SK hynix)