SK Hynix has revealed plans to establish a new company in Indiana through its third quarter 2024 business report, marking a significant step toward building a semiconductor packaging production base. The move is drawing attention to potential synergies with TSMC and Nvidia in creating a comprehensive artificial intelligence (AI) chip ecosystem in the US.
According to reports from ZDNet Korea and ET News, SK Hynix has incorporated a new company in West Lafayette, Indiana, laying the groundwork for its packaging facility.
The company had previously announced a US$3.87 billion investment to construct an advanced packaging production base for AI memory in West Lafayette. The facility is scheduled for completion before 2028, with high bandwidth memory (HBM) mass production slated to begin in the second half of 2028. Additionally, SK Hynix has formalized an investment agreement with the Indiana government and Purdue University for joint semiconductor research and development.
In August 2024, the US Department of Commerce pledged up to US$450 million in direct subsidies and US$500 million in loans for SK Hynix's West Lafayette investment under the CHIPS and Science Act, formalizing the commitment through a preliminary memorandum of terms (PMT).
The expansion plans highlight the potential formation of a comprehensive AI chip ecosystem in the US, as both TSMC and SK Hynix establish new facilities while strengthening their partnership with Nvidia. SK Hynix, currently Nvidia's largest HBM supplier, integrates its HBM with Nvidia's GPUs through TSMC's 2.5D packaging, particularly utilizing the CoWoS-L technology for 12-layer HBM3E, which optimizes design flexibility and cost efficiency.
During its third quarter 2024 earnings call, SK Hynix emphasized that HBM4 development requires unprecedented levels of technological collaboration, necessitating stronger partnerships with foundries. In response, the company is developing an integrated cooperative system with its foundry partners.
The company has also undertaken strategic organizational changes, closing its Eastern European office in Russia and establishing a new R&D company in Poland during the third quarter.
In related developments, Chosun Biz reports that SK Hynix is considering the acquisition of ASML's latest High-NA extreme ultraviolet (EUV) equipment, a 150-ton system valued at approximately US$400 million.
Article translated by Charlene Chen
