Gov. Holcomb, IEDC announce generational multi-billion-dollar investment to make Indiana leader in semiconductor packaging

SK hynix’s new West Lafayette plant and investment in research and development bolsters Indiana’s booming semiconductor ecosystem, attracting talent and supporting US innovation, technology and security

WEST LAFAYETTE, Ind., April 03, 2024 (GLOBE NEWSWIRE) -- Governor Eric J. Holcomb, Secretary of Commerce David Rosenberg and Purdue University President Mung Chiang joined federal partners and executives of South Korea-based SK hynix Inc., the world’s leading producer of High-Bandwidth Memory (HBM) chips, today as the company announced plans to establish a new advanced packaging fabrication and R&D facility for high-intensity and AI microelectronic products and applications in Indiana. SK hynix’s multi-billion-dollar investment is the first of its kind in the U.S. and is expected to drive innovation and fill a critical gap in the nation’s advanced packaging supply chain while creating up to 800 new, high-wage jobs by the end of 2030.   

“Indiana is a global leader in innovating and producing the products that will power our future economy, and today's news is proof positive to that fact,” said Gov. Holcomb. “I’m so proud to officially welcome SK hynix to Indiana, and we’re confident this new partnership will enhance the Lafayette-West Lafayette region, Purdue University and the state of Indiana for the long term. This new semiconductor innovation and packaging plant not only reaffirms the state’s role in the hard tech sector, but is also another tremendous step forward in advancing U.S. innovation and national security, putting Hoosiers at the forefront of national and global advancements.” 

SK hynix will make an initial investment of more than $3.87 billion to establish a 430,000-square-foot facility on 90 acres at the Purdue Research Park in West Lafayette to support critical U.S. demand for semiconductors. The new facility will be home to an advanced semiconductor packaging production line that will mass produce next generation HBM, the highest-performing Dynamic Random Access Memory (DRAM) chips, which are the critical components of graphic processing units (GPUs) that train AI systems. The facility will also develop future generations of chips and house an advanced packaging R&D line. 

By the end of 2030, SK hynix expects to create hundreds of highly skilled jobs in areas of engineering, technical support, administrative and maintenance operations.

“We are excited to build a state-of-the-art advanced packaging facility in Indiana,” said SK hynix CEO Kwak Noh-Jung. “We believe this project will lay the foundation for a new Silicon Heartland; a semiconductor ecosystem centered in the Midwest Triangle. This facility will create local, high-paying jobs and produce AI memory chips with unmatched capabilities, so that America can onshore more of its critical chip supply chain. We are grateful for the support of Governor Holcomb and the state of Indiana, of President Chiang at Purdue University, and of the broader community involved, and we look forward to expanding our partnership in the long run.”

SK hynix selected the West Lafayette site due to Indiana’s resilient manufacturing infrastructure, its robust talent and R&D ecosystem, and the strong support provided by the state and local governments. The company’s new initiative is a significant win for the Midwest and for U.S. national security.

Ambassador of the Republic of Korea to the United States Hyundong Cho, Director of the White House Office of Science and Technology Policy and Assistant to the President for Science and Technology Arati Prabhakar, U.S. Senator Todd Young and U.S. Assistant Secretary of Commerce for Global Markets and Director General of the U.S. and Foreign Commercial Service Arun Venkataraman were present for today’s announcement.

“SK hynix will soon be a household name in Indiana. This incredible investment demonstrates their confidence in Hoosier workers, and I’m excited to welcome them to our state. The CHIPS and Science Act opened a door that Indiana has been able to sprint through, and companies like SK hynix are helping to build our high-tech future,” said U.S. Senator Todd Young.

As a technology leader, integrator, and enabler in memory solutions, SK hynix is collaborating with Purdue University, one of the leading research institutions in the U.S., on plans for future R&D projects. These projects include work on advanced packaging and heterogeneous integration with Purdue’s Birck Nanotechnology Center and other research institutes and industry partners. They also hope to collaborate on a project related to memory-centric solutions and architecture for the generative AI era, specifically system-level memory design and in/near-memory computing. 

The company also plans to collaborate with Purdue University and Ivy Tech Community College to develop training programs and interdisciplinary degree curricula that will cultivate a high-tech workforce and build a reliable pipeline of new talent. Meanwhile, SK hynix plans to support the work of Purdue Research Foundation and other local non-profits and charities by building partnerships that provide community development, growth opportunities, and leadership training. 

“SK hynix is the global pioneer and dominant market leader in memory chips for AI,” Purdue University President Mung Chiang said. “This transformational investment reflects our state and university's tremendous strength in semiconductors, hardware AI, and hard tech corridor. It is also a monumental moment for completing the supply chain of digital economy in our country through chips advanced packaging. Located at Purdue Research Park, the largest facility of its kind at a U.S. university will grow and succeed through innovation.”

Today’s news solidifies Indiana as a semiconductor industry leader. Since 2022, eight companies have announced plans to establish semiconductor manufacturing plants here, committing to invest more than $6 billion and create more than 2,100 new high-skilled, high-paying jobs for Hoosiers. Indiana is now home to a new, 10-acre microelectronics campus – WestGate One – a public-private development near the Naval Surface Warfare Center, Crane Division (NSWC), and the state landed a new federal microelectronics hub designation through the CHIPS and Science Act, bringing $32.9 million in funding in the first year for the Silicon Crossroads Microelectronics Commons Hub.  

“West Lafayette is thrilled to join our national efforts to bring the semiconductor industry to the United States through President Biden's CHIPS and Science Act,” said West Lafayette Mayor Erin Easter. “This partnership will leverage Purdue University's science and research expertise with SK hynix’s innovation in semiconductor technology. The impact on West Lafayette will enable us to continue to provide the high level of service our community expects and to increase our quality-of-life amenities for the region so we can attract and retain the excellent graduates of Purdue University. In addition, SK hynix's global dedication to net zero carbon emissions by 2050, water process reduction and recycling and zero waste to landfill programs align with our community's commitment to environmental stewardship. We are grateful for SK hynix's investment and commitment to West Lafayette and for our partners Purdue University, Purdue Research Foundation, the city of Lafayette, Tippecanoe County and the Greater Lafayette region.”

Based on the company’s phase one investment plans, the Indiana Economic Development Corporation (IEDC) committed an investment in SK Hynix of up to $3 million in incentive-based training grants, up to $3 million in Manufacturing Readiness Grants, and up to $80 million in conditional structured performance payments. The IEDC offered up to $554.7 million of Innovation Development District tax rebates with the flexibility for the project to grow to $4.644 billion in capital investment. The IEDC also committed up to $45 million through the Industrial Development Grant Fund to support infrastructure improvements surrounding the new plant. These incentives are performance-based, meaning the company is eligible to claim state benefits once investments are made.  

The local community, including the city of West Lafayette, city of Lafayette and Tippecanoe County, as well as Duke Energy offered additional Incentives. The Purdue Research Foundation and Purdue University offered additional incentives and in-kind services valued at approximately $60 million, including discounted land pricing for 90 acres with an option to expand on an additional 30 acres, to support production, R&D, and talent and supply chain development.  

About SK hynix Inc. SK hynix Inc., headquartered in Korea, is the world’s top-tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at, 

About IEDC The Indiana Economic Development Corporation (IEDC) is charged with growing the State economy, driving economic development, and helping businesses launch, grow and locate in the state. Governed by a 14-member board chaired by Governor Eric J. Holcomb, the IEDC manages many initiatives, including performance-based tax credits, workforce training grants, innovation and entrepreneurship resources, public infrastructure assistance, and talent attraction and retention efforts. For more information about the IEDC, visit 

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