SK hynix breaks ground on Indiana AI chip facility

SK hynix has begun construction of its first semiconductor facility in the United States, a key step in expanding advanced packaging capacity for artificial intelligence memory and strengthening its global supply chain.

According to Herald Business on Tuesday, the company recently started piling work at its site in Indiana, marking the start of foundation construction for an AI-focused advanced packaging plant. Groundwork is expected to continue for several months, with above-ground construction likely to begin in the second half of the year.

The project follows SK hynix’s 2024 plan to invest $3.87 billion in the 56-hectare facility. Mass production is scheduled for the second half of 2028, focusing on next-generation high bandwidth memory products such as HBM4E and HBM5.

The Indiana plant forms part of the company’s broader strategy to build a global AI memory ecosystem linking its domestic bases in Yongin and Icheon in Gyeonggi Province and Cheongju, North Chungcheong Province, with the US. Its proximity to Purdue University is also expected to support collaboration with local research institutions.

Advanced packaging has emerged as a critical technology in the AI era, directly affecting the performance and yield of vertically stacked HBM chips.

SK hynix is also accelerating domestic investment. It is building a 19 trillion won ($12.9 billion) advanced packaging facility in Cheongju, set for completion in 2027, while expanding DRAM capacity at its M15X fab, which began operating a second clean room ahead of schedule in March.

The company plans to deploy around 20 extreme ultraviolet systems from ASML across key production lines to support next-generation DRAM processes.

Despite these efforts, supply constraints are expected to persist. Chey Tae-won recently warned that shortages in key resources could limit memory output through 2030.

SK hynix is, meanwhile, on track for another record quarter, with analysts forecasting operating profit of up to 40 trillion won.