A global technology maker plans to invest nearly $4 billion to build a new semiconductor plant in Indiana.
South Korea-based SK Hynix plans to produce next-generation memory chips for use in AI and other technologies at the West Lafayette plant.
Arathi Prabhakar is director of the Office of Science and Technology Policy at the White House. She says these high-bandwidth memory, or HBM, chips are important to all aspects of technological growth.
“Look at what we have — we have cell phones, we have computers of all kinds, we have these incredible advances in artificial intelligence, all thanks to semiconductors,” Prabhakar said.
She adds that moving this type of manufacturing to the United States is important for security and the economy.
“In recent years, this [manufacturing] have become dangerously concentrated in just one part of the world,” Prabhakar said. “And that has huge implications for our economy, whether it’s jobs or how it affects the rest of the economy because of supply chains.” This has huge implications for national security.
Woojin Choi is from SK Hynix. He said these products are at the heart of the artificial intelligence that will make Indiana a hot spot for business growth and jobs.
“Talented people will be drawn to Indiana not only for its great community, friendly people and top-notch basketball, but also for the intellectual growth they will find here as it becomes a center for scientific development,” Choi said.
Arun Venkataraman is Assistant Secretary of Commerce for Global Markets at the US Department of Commerce. He said this facility will also make supply chains stronger.
“We are witnessing another milestone with the announcement of plans for a modern, state-of-the-art semiconductor manufacturing facility that can be the foundation for more jobs for workers and economic benefits for this and surrounding communities,” Venkataraman said.
“The facility also contributes to our work to strengthen the critical semiconductor supply chains that will revolutionize our economies, providing the processing power to take advantage of the enormous opportunities that processing-intensive applications demand.”
U.S. Sen. Todd Young (R-Ind.) spoke about CHIPS and the Science Act, which he helped author, during the event. He said this legislation is a step to show other countries that the United States is open to technology investment, and that he believes that played a role in South Korea’s investment in West Lafayette.
“Our federal investment in semiconductors signals to the world that America is open for business,” he said. “And when America is open for business, that means Indiana is open for business.”
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Hyundong Cho is South Korea’s ambassador to the United States. He said the economic partnership between the two countries was “robust”.
“The plant we are here to announce will be the first major facility in the United States for large-scale HBM packaging,” Cho said.
The facility will mass-produce these HBM chips, which are critical for computers and AI learning systems, and develop future generations of chips. SK Hynix will also continue to work with Purdue University on future research and development projects.
The facility is expected to create up to 800 jobs by the end of 2030. The state is offering up to approximately $700 million in contingent incentives.
Violet is our daily reporter. Contact her at [email protected] or follow her on Twitter at @ComberWilen.
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