Chip Maker SK Hynix To Funnel USD 3.87 Billion in Chip Packaging Plant By CIOTechOutlook Team

Chip Maker SK Hynix To Funnel USD 3.87 Billion in Chip Packaging Plant

CIOTechOutlook Team | Thursday, 04 April 2024, 10:55 IST

SK Hynix, a semiconductor firm, added that it will fund around $3.87 billion to assemble an advanced packaging plant and research and development facility for AI products in the U.S. province of Indiana.

The new plant will incorporate the latest chip creation line to efficiently manufacture cutting-edge high bandwidth memory (HBM) chips, presently utilized in graphic handling units that train AI systems, the Nvidia provider said in a proclamation. Large-scale manufacturing is proposed to begin in the last part of 2028. The new West Lafayette, Indiana office will likewise house a packaging R&D line.

The facility "will help strengthen supply chain resilience" for AI chips in the U.S., CEO Kwak Noh-Jung said.

The designing talent pool given by the region's Purdue University, a framework for chip manufacturing, and backing from the state and neighbourhood government were factors in the chipmaker's choice, it said. SK promised in 2022 to put $15 billion into the semiconductor business through Research and development programs, materials, and the making of an advanced packaging and testing office in the U.S.

In the previous month, it started large-scale manufacturing of the most recent variant of HBM chips called HBM3E, with sources mentioning beginning shipments are going to Nvidia. SK Hynix has been the sole provider of the variant recently utilized - the HBM3 - to Nvidia, which has 80% of the market for AI chips.