SK hynix breaks ground on $4 billion US HBM plant as memory chip shortage looms through 2030
11 Sources
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SK hynix breaks ground on the first HBM plant in the US, bringing key AI component production to the States -- says production starts in 2029
The campus will also explore future packaging technologies with customers, partners, and academia. High-bandwidth memory (HBM) is one of the key components of AI systems that is not currently assembled in the U.S., but this is going to change in 2029, when SK hynix initiates packaging of HBM
[2]
SK hynix open to US investment, sees memory shortage through 2030
SK hynix CEO Kwak Noh-jung said SK hynix was looking globally for potential sites that could support its development and testing needs, citing power, water and government incentives among key considerations. Kwak also said the company's newly established AI Co. would serve as an investment vehicle
[3]
SK Hynix weighs Japan memory fab partnership to supply AI boom
SK Hynix is studying the feasibility of a joint venture to make memory chips in Japan, one of several options under consideration to meet surging AI demand while controlling production costs. The South Korean supplier of dynamic and flash memory is considering various locations for a jointly
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SK Hynix holds groundbreaking ceremony for $4 billion Indiana AI chip packaging facility
The facility, at the Purdue Research Park in West Lafayette, is scheduled to begin cleanroom operations in the second half of 2028, according to SK Hynix's website and press statements. The site will house a next-generation high-bandwidth memory (HBM) packaging line as well as an AI semiconductor
[5]
Memory supply crunch to last through 2030, predicts SK Hynix CEO
SK Hynix CEO Kwak Noh-jung on Thursday said the memory semiconductor shortage due to the spread of artificial intelligence will last through the end of 2030. He also left open the potential for more investment in the US given the latter's desire for chip companies to build front-end manufacturing
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SK Hynix to start AI chip volume production in Indiana in 2029 - The Korea Times
The company's board approved about 54.3 trillion won, or $38.30 billion, in investments through 2031 earlier this month. WEST LAFAYETTE, Indiana -- South Korean chipmaker SK Hynix said on Thursday it plans to begin volume production of its next-generation HBM4E chips at its Indiana facility in the
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SK Hynix to start AI chip volume production in Indiana in 2029
South Korean chipmaker SK Hynix said on Thursday it plans to begin volume production of its next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, and expects the site to eventually reach annual capacity of hundreds of thousands of wafers. The more than US$4 billion
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SK's next-gen fab to build HBM on US soil by 2029
For the first time, high-bandwidth memory (HBM) -- a component crucial to the AI industry -- will be produced in the US by a Korean company. SK Hynix is investing over US$4 billion to construct an HBM packaging base that will produce hundreds of thousands of wafers each year. The production of HBM
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SK Hynix to start US AI chip output in 2029, sees memory shortage through 2030 - The Korea Times
SK Hynix's board approved about 54.3 trillion won in investments through 2031, including 35.2 trillion won for the second phase of construction of its chip fabrication plants in South Korea. WEST LAFAYETTE, Indiana -- South Korean chipmaker SK Hynix said on Thursday it plans to begin volume
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SK Hynix Sees Memory Shortage Lasting Through 2030 as AI Demand Reshapes Industry
AI-driven demand is likely to keep the memory market undersupplied through the end of the decade, SK Hynix Chief Executive Kwak Noh-jung said, arguing that the industry's next downturn is unlikely to resemble the sharp boom-and-bust cycles of the past. At a press conference held in conjunction
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SK Hynix to launch production of its HBM4E chips in Indiana in 2029
Located in the Purdue Research Park in West Lafayette, the site is expected to start operating its clean rooms in the second half of 2028 and ultimately reach an annual capacity of several hundred thousand wafers. It will house an advanced HBM packaging line as well as a research and development
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SK hynix held a groundbreaking ceremony for its first US high-bandwidth memory packaging facility in Indiana, marking a $4 billion investment. CEO Kwak Noh-jung forecasts a memory semiconductor shortage lasting through 2030 driven by surging AI demand, while the company explores further global expansion including potential partnerships in Japan.
SK hynix Launches First US HBM Production Facility
SK hynix broke ground on its first American high-bandwidth memory facility in West Lafayette, Indiana, marking a significant shift in AI chip production to US soil
1
. The $4 billion AI chip packaging facility at Purdue Research Park will specialize in advanced packaging, testing, and R&D of HBM memory chips critical to AI systems4
. The company expects to open the cleanroom by October 2028 and begin volume production of next-generation HBM in the second half of 2029, approximately one year later than initially planned1
. Once operational, the Indiana site will employ around 1,000 people directly, with the project expected to create about 7,000 direct and indirect jobs locally4
.
Source: Tom's Hardware
Strategic Positioning Amid Memory Semiconductor Shortage
CEO Kwak Noh-jung delivered a stark forecast at the groundbreaking ceremony, predicting the memory semiconductor shortage will persist through the end of 2030
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. This projection stems from surging demand for AI memory chips as major technology companies race to build AI data centers4
. Kwak emphasized that the AI boom is fundamentally reshaping the memory chip business from standardized products to partially or fully customized AI chips, making traditional boom-and-bust cycles less severe2
. SK hynix currently commands a dominant 58% of the global HBM market by revenue in the first quarter of 2026, significantly ahead of Samsung Electronics and Micron Technology, which each held 21% market share4
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Source: Hankyoreh
Advanced Packaging and Customization Strategy
The Indiana facility will not manufacture DRAM wafers but will package HBM stacks using DRAM wafers produced in South Korea and base dies from South Korea, Taiwan, or the US
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. This advanced packaging approach allows SK hynix to position closer to major US customers including Nvidia, Microsoft, and Google, significantly shrinking the feedback loop for custom HBM development1
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. The site will establish an Advanced Packaging R&D Testbed next to manufacturing lines, enabling collaboration with customers, Purdue University, and commercial partners on future packaging technologies1
. SK hynix signed a memorandum of understanding with Purdue University to jointly research system integration and advanced packaging technologies, including HBM1
.
Source: Japan Times
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Government Support and Future Expansion Plans
The project received substantial US backing through the CHIPS Act, with the government finalizing $458 million in grants and up to $500 million in loans in December 2024
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. The investment has grown modestly from the initial $3.87 billion agreement announced in 2024, primarily because demand has strengthened2
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. Kwak indicated SK hynix remains open to further US semiconductor investments, stating the company is looking globally for sites that can support development and testing needs, with power, water, and government incentives among key considerations2
. Separately, SK hynix's board approved approximately $38.30 billion in investments through 2031, including funding for the second phase of chip fabrication plants in South Korea4
.Global Expansion and Memory-Logic Convergence
Beyond US semiconductor investments, SK hynix is exploring international opportunities to meet AI-driven businesses demands. The company is studying the feasibility of a joint venture to make memory chips in Japan, with Chairman Chey Tae-won indicating various locations are under consideration for a jointly operated plant
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. SK hynix became the largest shareholder in Kioxia, a Japanese NAND flash maker, and is exploring ways to deepen its role in Japan's chip industry while contributing to regional semiconductor development2
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. The CEO highlighted memory-logic convergence as a critical trend, pointing to HBM4 incorporating logic circuitry into its base die as the first signal of this evolution5
. SK hynix established an AI subsidiary to serve as an investment vehicle for startups and companies supporting AI-driven businesses, with targets including firms specializing in digital signal processing, networks, and interconnects that create synergy with the memory business2
5
. Watch how supply-chain resilience initiatives reshape global semiconductor manufacturing as customized AI chips increasingly require closer collaboration between chipmakers, data centers, and front-end manufacturing partners.References
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