SK Hynix Breaks Ground on $4 Billion Indiana HBM Packaging Plant
High-bandwidth memory is a critical component in artificial intelligence accelerators, allowing processors to move large volumes of data at high speed. Advanced packaging has consequently become a strategic bottleneck in the AI chip supply chain. SK Hynix’s decision to establish an HBM packaging and testing base in Indiana brings a key production stage closer to US customers while strengthening semiconductor ties between South Korea and the United States.
SK Hynix has broken ground on the Indiana advanced-packaging plant, committing more than $4 billion to the project with support from the US CHIPS Act. The facility is scheduled to begin mass production of next-generation HBM in the second half of 2029. It will package and test the memory products in the United States for delivery to local customers, expanding the company’s AI memory footprint and the domestic US semiconductor ecosystem.
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The history behind this eventSK Hynix to Break Ground on $3.87 Billion Indiana HBM Plant
High-bandwidth memory, or HBM, is a critical component in AI accelerators because it allows processors to access large volumes of data at high speed. SK Hynix’s planned US advanced-packaging facility is intended to expand capacity for the fast-growing AI market, strengthen supply-chain ties with partners including Nvidia, and support Washington’s effort to localize semiconductor production through the CHIPS Act.
SK Hynix will hold a groundbreaking ceremony on Aug. 27 for its advanced-packaging plant in Indiana, a project involving $3.87 billion in investment and support under the US CHIPS Act. The facility will focus on HBM used in artificial-intelligence systems and is scheduled to begin mass production in the second half of 2028, positioning the South Korean memory maker to capture rising demand from AI data centers.
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