The U.S. Department of Commerce and Korean chipmaker SK hynix have reached a preliminary agreement of up to $450 million in proposed federal incentives to support the company’s construction of an advanced packaging and research plant in Indiana.
The new building at the Purdue Research Park in West Lafayette will house a production line capable of mass-producing next-generation high-bandwidth memory. HBM technology is used to make electronic components critical to training artificial intelligence systems.
Commerce Secretary Gina Raimondo said the deal with SK hynix will solidify the United States’ position as a leader in the global AI hardware supply chain. “Because of President Biden and Vice President Harris’ leadership, we are creating hundreds of new jobs in Indiana and ensuring the Hoosier state and Purdue University will play a crucial role in advancing America’s national security and supply chains,” she said.
Signed in 2022, the CHIPS Act authorizes investments in local capability to ensure that the United States has a sufficient supply of essential semiconductors for national defense and other critical sectors.