SK hynix to break ground on Indiana fab Aug. 27, targeting HBM production from 2028

SK hynix will hold a groundbreaking ceremony Aug. 27 (local time) for its semiconductor packaging fab under construction in Indiana.

The company has set Aug. 27 as the date for the ceremony at the advanced semiconductor packaging fab it is building in West Lafayette, Indiana, and has sent official invitations to key customers and partners, according to industry sources Thursday.

SK hynix CEO Kwak Noh-jung and SK Group Chairman Chey Tae-won are among the senior executives expected to attend, along with CEOs and representatives from major technology companies. Eyes are also on the possibility of a meeting between Chey and Nvidia CEO Jensen Huang.

Observers are also watching to see whether Chey will unveil additional plans for semiconductor facility investment in the United States. Semafor previously reported that Intel is seeking an operational partner for its long-delayed Ohio project and that SK hynix is among the leading candidates under consideration.

Following SK hynix's American depositary receipt listing, Chey said in a local media interview that "building a memory chip factory is possible if conditions such as power, water, labor and supply chains are in place," signaling the potential to expand memory production lines in the country. Earlier this year, SK hynix also established an AI solutions firm, AI Company, in the United States.

SK hynix announced in March 2024 that it would invest $3.87 billion to build an advanced packaging factory and research and development facility in Indiana to produce HBM chips.

The US government agreed to provide up to $450 million in direct subsidies and $500 million in loans under the CHIPS and Science Act.

The Indiana fab began concrete foundation work in the first half of this year and is set to move into full structural construction following the groundbreaking ceremony. SK hynix plans to begin mass production of HBM at the Indiana facility in the second half of 2028.