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Hynix Plans $3.9bn HBM Packaging Plant in Indiana

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April 04, 2024

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Hynix, a leading semiconductor manufacturer, has announced plans to construct a cutting-edge HBM packaging plant at the Purdue Research Park in West Lafayette, Indiana. The investment for this state-of-the-art facility is estimated at $3.9 billion, marking a significant milestone for the company's expansion strategy.

The production at the new plant is scheduled to commence in the second half of 2028, with a focus on advanced packaging for AI products. Hynix's CEO, Kwak Noh-Jung, expressed enthusiasm about this venture, stating, "We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States."

Furthermore, Noh-Jung emphasized the importance of strengthening the supply chain resilience and fostering a local semiconductor ecosystem. He envisions the project as a catalyst for establishing a new Silicon Heartland, with the Midwest Triangle at its core. The facility is expected to generate high-paying jobs and produce AI memory chips with unparalleled capabilities.

Despite the significant investment, there has been no mention of utilizing funds from the Chips Act to incentivize Hynix's decision to establish the plant in Indiana. Hynix currently holds a dominant position in the HBM market, commanding approximately 50% share after pioneering the architecture in collaboration with AMD a decade ago.

The HBM technology, initially developed to cater to the gaming market, has evolved to become the preferred memory solution for GPUs used in AI training and inference applications. This strategic move by Hynix aligns with the growing demand for advanced semiconductor solutions in the evolving tech landscape.

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