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SK hynix eyes semiconductor packaging plant in Indiana

Collected: 2024.02.02

Distributed: 2024.02.03

Source: Go Direct

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[Courtesy of SK hynix]

South Korean semiconductor giant SK hynix Inc. is reportedly considering building a semiconductor packaging plant in the state of Indiana, the United States, according to a report by The Financial Times on Thursday.

While the company has not yet made a final decision, the move signifies a strategic step towards enhancing chip production capabilities in the U.S.

The proposed SK hynix packaging plant in Indiana aims to specialize in the production of High-Bandwidth Memory (HBM) chips, a crucial component used in Nvidia’s graphic processing units (GPUs). The packaging process involves connecting integrated circuits electrically and controlling heat generation, ensuring efficient functionality.

HBMs to be produced by SK hynix will be used in Nvidia’s graphics processing units (GPUs) in the U.S. Historically, SK hynix has produced HBMs in Korea. It has also used Taiwan’s TSMC to integrate HBMs into Nvidia GPUs alongside its own processors.

The potential establishment of a packaging plant in Indiana suggests a shift towards enabling Nvidia to source components locally within the U.S.

As TSMC builds two factories in Arizona, the establishment of an SK hynix facility in Indiana could contribute to self-sufficiency in the U.S. semiconductor industry.

Market analysts speculate that the investment required for SK hynix’ Indiana plant could be sourced from part of the $22 billion investment plan mentioned by SK Group Chairman Chey Tae-won during his discussions with U.S. President Joe Biden in 2022.

By Seong Seung-hoon and Minu Kim

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