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SK hynix invests £3 billion in US AI chip facility

Written by Thu 4 Apr 2024

Image Credit: Reuters

The world’s second-biggest memory chip maker, SK hynix, said it will invest £3 billion ($3.87 billion) to construct an advanced packaging plant and artificial intelligence (AI) product research and development facility.

The new plant will be situated in Indiana in the US and include an advanced chip production line to mass-produce next-generation high bandwidth memory (HBM) chips. These chips are currently used in graphic processing units that train AI systems. 

“We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the US that will help strengthen supply-chain resilience and develop a local semiconductor ecosystem,” said Kwak Noh-Jung, CEO at SK hynix.

Mass production will commence in the latter half of 2028 at the new facility in West Lafayette, Indiana, which will also host a packaging R&D line. 

The decision to establish the facility was influenced by factors such as the engineering talent pool from Purdue University, chip manufacturing infrastructure, and support from state and local government.

Last month, SK Hynix initiated mass production of the latest HBM chips, known as HBM3E. Initial shipments are reportedly set for NVIDIA.

In January, the South Korean chipmaker said it has the potential for its market value to double in three years to £119.2 billion ($152 billion) through its AI memory chips. 

Kwak Noh-Jung said the significance of memory will increase with the growing prevalence of Generative AI. He added that with the evolution of AI systems, there will be a diversification in customer demands for memory.

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Written by Thu 4 Apr 2024

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