Report: SK Hynix Mulls Building  Billion Advanced Packaging Facility in Indiana

Report: SK Hynix Mulls Building $4 Billion Advanced Packaging Facility in Indiana

SK Hynix is ​​considering whether to build a state-of-the-art packaging facility in Indiana. The Wall Street Journal. If the company goes ahead with the project, it plans to invest $4 billion and build one of the world's largest modern packaging facilities. But to carry out the project, SK hynix expects to need help from the US government.

Acknowledging the report but stopping short of confirming the company's plans, a company spokesperson told the WSJ that SK hynix is ​​”reviewing its advanced chip packaging investment in the U.S., but has not yet made a final decision.” “

Companies like TSMC and Intel spend billions on advanced packaging facilities, but so far, neither company has announced a chip packaging plant worth SH hynix's $4 billion. The field of advanced packaging – CoWoS, passive silicon interposers, redistribution layers, die-to-die bonding, and other advanced technologies – has seen an explosion in demand over the past half decade. As bandwidth advances with traditional organic packaging continue to ramp up, chip designers need to turn to more complex (and difficult-to-assemble) technologies to accommodate a large number of signals at higher transfer rates. Can be wired up. That has turned advanced packaging into a bottleneck for advanced chip and accelerator production, requiring additional packaging facilities.

If SK hynix approves the project, the state-of-the-art packaging facility is expected to start operating in 2028 and create 1,000 jobs. With an estimated cost of $4 billion, the plant is set to become one of the largest modern packaging facilities in the world.

Meanwhile, government support is considered essential for an investment of this scale, along with potential state and federal tax incentives, according to the report. The concessions are part of a broader move to bolster the U.S. semiconductor industry and reduce dependence on South Korean-made memory.

SK hynix is ​​the world's largest producer of HBM memory, and one of the HBM suppliers to NVIDIA. The next generations of HBM memory (including HBM4 and HBM4E) will require even closer collaboration between chip designers, chipmakers, and memory manufacturers. Therefore, HBM's packaging in the U.S. could be a significant advantage for NVIDIA, AMD, and other U.S. chipmakers.

The investment in the Indiana facility will be a strategic move by SK hynix to expand its advanced chip packaging capabilities in general and demonstrate its commitment to the US semiconductor industry.

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