SK Hynix Begins $4B US Plant To Feed Insatiable AI Chip Demand
SK hynix has officially broken ground on its first U.S. manufacturing site, kicking off construction on a $4 billion advanced packaging and R&D facility in West Lafayette, Indiana. Located within the Purdue Research Park, the 133-acre campus aims to ease a bottleneck in the AI hardware supply chain by bringing domestic high-bandwidth memory (HBM) packaging closer to major U.S. customers like NVIDIA.
In a press release, SK hynix says it will fabricate cutting-edge DRAM wafers at its facilities in South Korea before shipping them to West Lafayette. Once there, workers will stack the dies vertically using advanced interconnects to produce high-density HBM modules designed for next-generation AI accelerators.
Advanced memory is foundational to the next generation of AI.
— NVIDIA Newsroom (@nvidianewsroom) August 27, 2026
Congratulations to @SKhynix on this milestone in Indiana and their continued investment in U.S. semiconductor manufacturing. https://t.co/kZYtArh1z4
"Furthermore, an 'Advanced Packaging R&D Testbed' will be built alongside the production lines, enabling customers, universities, and business partners to collaboratively develop next-generation packaging technologies and rapidly execute prototype fabrication and performance validation," SK hynix says.
The Indiana fab's cleanroom is scheduled to open by October 2028, with high-volume commercial production targeted for the second half of 2029. SK hynix anticipates the site becoming a major HBM production hub with around 1,000 U.S. workers once it's fully up and running.
The project—which expanded from an initial $3.9 billion estimate to over $4 billion—receives federal backing through up to $458 million in direct CHIPS Act grants and $500 million in proposed loans.
Alongside the buildout, SK hynix also finalized a research framework agreement with Purdue University to collaborate on advanced packaging technology and build pipeline programs for local engineering graduates. SK hynix says it is evaluating more than 100 supply partners for materials, components, and equipment for the Indiana site, which in addition to employing 1,000 workers, will also create around 7,000 direct and indirect jobs across the broader regional ecosystem.
"SK hynix’s historic investment in West Lafayette is further proof that Indiana is leading the way in rebuilding America’s semiconductor industry," said Senator Young. "This project will create good-paying jobs, strengthen our national and economic security, and ensure the technologies of the future are developed and manufactured here in the United States."
