SK hynix has begun construction of its first U.S.-based production site for high-bandwidth memory (HBM), a key component in AI systems that has not previously been assembled domestically. The company held a groundbreaking ceremony in West Lafayette, Indiana, at Purdue University's Holloway Gymnasium, marking the start of a facility expected to cost more than $4 billion.
The Indiana site will focus on advanced packaging, testing, and R&D of HBM rather than manufacturing the DRAM wafers themselves. According to Tom's Hardware, DRAM wafers will be produced in South Korea and base dies sourced from Korea, Taiwan, or the U.S., with final assembly happening in Indiana. TechPowerUp similarly describes wafers made by SK hynix in Korea being shipped to Indiana for packaging and testing before being supplied to U.S. customers as "Made in USA" products. SK hynix plans to open the facility's cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029; Tom's Hardware notes this timeline is roughly a year later than originally planned, a detail not mentioned in TechPowerUp's report.
The facility is expected to employ around 1,000 people once commercial operations begin. TechPowerUp reports that SK hynix anticipates creating approximately 7,000 direct and indirect jobs through local and national companies during construction and subsequent operations, and that more than 100 companies are being considered as suppliers of materials, components, and equipment for the plant.
Alongside the production lines, SK hynix will build an Advanced Packaging R&D Testbed, allowing collaboration with customers, universities, and business partners on future packaging technologies, prototyping, and validation. The company also signed a memorandum of understanding with Purdue University to jointly research system integration and advanced packaging technologies, including HBM. TechPowerUp adds that SK hynix will participate in the USFK Veterans Job Platform, a recruitment partnership with the Korea Chamber of Commerce and Industry and the Korea-US Alliance Foundation, to provide employment opportunities for discharged U.S. Forces Korea service members.
The ceremony drew several U.S. and South Korean officials, including Indiana Governor Mike Braun, U.S. Senator Todd Young, Purdue University President Mitch Daniels, Korea-US Alliance Foundation Chairman Robert Abrams, and South Korean Ambassador to the U.S. Kang Kyung-wha, along with SK Group Vice Chairmen Yu Jeong-Joon and Lee Hyung-hee. Senator Young credited the CHIPS and Science Act with helping enable the investment, while Governor Braun called it a step forward for Indiana's economy. SK hynix CEO Kwak Noh-Jung said the Indiana fab will serve as "a gateway to deliver first Made in USA HBM products" and that the company will expand its investments and collaboration in the U.S. as it works to become "the most trusted partner in shaping the future of AI in America."