SK Hynix Secures $458 Million Grant for AI Chip Factory in Indiana

The U.S. Department of Commerce has confirmed the allocation of up to $458 million in government grants to SK Hynix. This funding aims to support the establishment of an advanced chip packaging facility and a research and development center for artificial intelligence products in Indiana.

SK Hynix, a supplier for Nvidia, had announced plans in April to invest $3.87 billion to build the West Lafayette facility. The facility will include a production line dedicated to the mass production of next-generation high-bandwidth memory chips.

In addition to the grant, the Department of Commerce plans to provide a $500 million government loan for the SK Hynix project. The distribution of these grant funds will be contingent upon SK Hynix reaching project milestones.

The Department predicts that the project will create 1,000 job opportunities and fill a critical gap in the U.S. semiconductor supply chain.

Kwak Noh-Jung, CEO of SK Hynix, expressed the company's eagerness to contribute to strengthening the U.S. artificial intelligence semiconductor supply chain.

In August 2022, the U.S. Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing and related components. It also authorized a $75 billion government loan.

The Department of Commerce is distributing significant grants to the five largest semiconductor manufacturers, including TSMC, Intel, Samsung Electronics, Micron, and SK Hynix. The Department has finalized all these grants except for the $6.4 billion awarded to Samsung.