SK Hynix is intent on expanding its lead over Samsung Electronics Co. and Micron Technology Inc. in the supply of HBM chips to Nvidia, an edge that’s helped double its market value since the end of 2022. Packaging, the process of encasing chips and preparing them to be connected to devices, has emerged as a key arena in the US-China technological conflict.
SK Hynix Inc. is set to receive an initial US$450 million ($596.4 million) in US grants and US$500 million in loans to build an advanced chip packaging and research facility in Indiana, a project that will bolster US capacity for a critical part of the artificial intelligence (AI) supply chain.
The US$3.87 billion site will package high-bandwidth memory chips for use with AI chipmakers such as Nvidia Corp., an area that the Korean company dominates. SK Hynix is expected to ship its own memory chips from South Korea to its US facility, according to a Commerce Department official who requested anonymity to brief reporters ahead of the announcement. That site is expected to create around 1,000 jobs. In addition to grants and loans, SK Hynix expects to benefit from a 25% tax credit, like other firms building in the US.
