$4bn for US memory packaging plant
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Korean memory chip giant SK hynix plans to spend $4bn on a packaging fabrication and R&D facility for HBM memory chips for AI in the Purdue Research Park.
The advanced semiconductor packaging production line at Purdue in Indiana will mass-produce next-generation high-bandwidth memory HBM chips that are supporting the GPUs used in AI systems.
The company plans to begin mass production in the second half of 2028. The park also hosts IBM and Belgian research lab imec.
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“We are excited to build a state-of-the-art advanced packaging facility in Indiana,” said SK hynix CEO Kwak Noh-Jung. “We believe this project will lay the foundation for a new Silicon Heartland, a semiconductor ecosystem centred in the Midwest Triangle. This facility will create local, high-paying jobs and produce AI memory chips with unmatched capabilities, so that America can onshore more of its critical chip supply chain. We are grateful for the support of Gov. Holcomb and the state of Indiana, of President Chiang at Purdue University, and of the broader community involved, and we look forward to expanding our partnership in the long run.”
The plant is supported by the US CHIPS Act which includes subsidies specifically for packaging in the country.
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“When President Biden signed the bipartisan CHIPS and Science Act, he put a stake in the ground and sent a signal to the world that the United States cares about semiconductor manufacturing,” said Arati Prabhakar, President Biden’s chief science and technology advisor and director of the White House Office of Science and Technology Policy. “Today’s announcement will strengthen the economy and national security, and it will create good jobs that support families. This is how we do big things in America.”
“The pandemic disruption has shown the reliance on semiconductors, with production concentrated in limited regions around the world. Greater Lafayette has worked continuously and cooperatively for years to position ourselves for an opportunity of this magnitude, and we look forward to the long-term economic impact this will have on our communities. Our joint investments in infrastructure, innovation, along with quality-of-life initiatives, have contributed to this venture becoming a reality. We look forward to working with and welcoming SK hynix to Greater Lafayette,” said Tony Roswarski, mayor of Lafayette..
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