The company has indicated that it plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $450 million, the CHIPS Program Office would make up to $500 million of proposed loans.
The deal will “further solidify America’s AI hardware supply chain in a way no other country on earth can match, with every major player in advanced semiconductor manufacturing and packaging building or expanding on our shores,” said U.S. Secretary of Commerce Gina Raimondo.
The investment gives the US preliminary agreements with all five of the world’s leading-edge logic, memory, and advanced packaging providers. No other economy in the world has more than two of these companies producing leading-edge chips.
Hynix’s West Lafayette facility, located at the Purdue University Research Park, will be home to an advanced semiconductor packaging line that will mass-produce next generation HBM.
These high-performance memory chips are crucial components of graphics processing units (GPUs) that train AI systems due to their increased processing power. This next generation chip would be mass-produced at the West Lafayette facility and will boast a more advanced performance than the company’s latest HBM, which processes up to 1.18 terabytes of data – the equivalent of 230 full HD movies – per second. Mass production at the facility is expected to begin in the second half of 2028.
As a result of this proposed investment, the Biden-Harris Administration would establish a research hub in Indiana in partnership with Purdue University, which hosts the largest facility of its kind at a U.S. university, while bringing next generation HBM and advanced packaging R&D to the United States.
The next generation HBM that will be researched and developed, mass-produced, and packaged in this ecosystem with Purdue University will play an important role in the U.S. semiconductor ecosystem and advancing U.S. technological leadership.
“We are moving forward with the construction of the Indiana production base, working with the State of Indiana, Purdue University and our U.S. business partners to ultimately supply leading-edge AI memory products from West Lafayette,” says Hynix CEO Kwak Noh-Jung.
The company will collaborate with Purdue University on plans for future R&D projects, which include working on advanced packaging and heterogeneous integration with Purdue’s Birck Nanotechnology Center and other research institutes and industry partners.
Hynix plans to collaborate on projects for memory-centric solutions and architecture for generative AI – specifically memory design and in/near memory computing.
As part of its workforce development efforts, Hynix plans to work 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.
