SK hynix to break ground on $3.87B Indiana chip packaging plant this month

What happened

SK hynix will hold a groundbreaking ceremony on Aug. 27 for its $3.87 billion advanced chip packaging plant in West Lafayette, Indiana. The facility will focus on high-bandwidth memory (HBM) packaging and is set to begin mass production in the second half of 2028. The U.S. government has committed up to $450 million in direct funding and $500 million in loans under the CHIPS Act. SK Group Chairman Chey Tae-won and SK hynix CEO Kwak Noh-jung are expected to attend; Nvidia CEO Jensen Huang's attendance is not confirmed.

Why it matters

The Indiana plant gives SK hynix a U.S.-based production base for advanced HBM packaging, meeting rising demand for AI-related memory. It also underscores deeper ties with Nvidia and opens the door to further U.S. investment, including a possible memory production facility.