SK hynix to Build First U.S. HBM Plant; Targeting Mass Production by 2029
SK hynix is to construct an 'HBM' factory in the United States. HBM is a core memory component that determines the performance of artificial intelligence (AI), marking the first time SK hynix will produce it directly within the U.S. The company announced on the 30th that it held a groundbreaking ceremony for a next-generation High Bandwidth Memory (HBM) advanced packaging production base at Purdue University in West Lafayette, Indiana, on the 27th (local time).
SK hynix aims to invest over $4 billion in the Indiana fab, with a target to begin mass production of HBM4E, its seventh-generation HBM, in the second half of 2029. The timeline has been concretely established: the cleanroom at the Indiana fab is scheduled for completion in October 2028. The facility will operate by manufacturing DRAM wafers in South Korea, shipping them to the U.S., and then conducting packaging and testing before supplying them to local customers.
Investment funds secured through its Nasdaq listing have already been obtained. SK hynix raised a total of $26.571 billion by listing American Depositary Receipts (ADRs) on the Nasdaq in July, issuing 177.9 million shares at $149 per share. The actual proceeds from the new share issuance amounted to 39.8905 trillion won, with the stated purpose specified as funding for facilities rather than operating expenses or mergers and acquisitions (M&A). However, the entirety of the funds raised on the Nasdaq will not be allocated to the Indiana fab.
U.S. government support is also backing the investment. The U.S. Department of Commerce has decided to provide direct subsidies of up to $458 million for the Indiana project under the CHIPS Act, and has paved the way for up to $500 million in federal government loans. Combined, these two items amount to a maximum of $958 million.
SK hynix plans to construct an advanced packaging R&D testbed alongside the production facility and will engage in joint research on next-generation packaging technologies with Purdue University. The two parties intend to research next-generation system integration and advanced packaging technologies, including HBM, progressing to prototype creation and performance verification. In this regard, SK hynix aims to create approximately 7,000 direct and indirect jobs in cooperation with over 100 material, component, and equipment companies, and develop the site into a key U.S. HBM production hub employing around 1,000 people once full operations commence.
During the groundbreaking ceremony, SK hynix CEO Kwak No-jung stated, 'The United States is the center of AI innovation, home to top-tier customers, research capabilities, and a robust ecosystem.' He added, 'The Indiana fab will become the first hub to provide "Made in USA" HBM.' He further emphasized, 'We will expand investment and cooperation with the U.S., grow together, and become the most trusted partner in shaping the future of AI.'
