WEST LAFAYETTE, Indiana - SK hynix (000660. KS) said it plans to invest $3.87 billion to build an advanced chip packaging plant in Indiana to meet the rising demand for artificial intelligence (AI) products.
The company said in a public filing that the plant, to be located in West Lafayette, will begin mass production in the second half of 2028.
It will produce advanced packaging for high-bandwidth memory (HBM) chips in AI applications like ChatGPT.
The move comes as global chipmakers rush to expand the capacity for these high-value chips to capitalize on an AI boom led by the rapid adoption of chatbots and image generators at technology giants such as Google and Microsoft.
The U.S. government is also offering incentives for domestic chip production to reduce reliance on Asian suppliers.
SK Hynix said it chose Indiana because of its manufacturing infrastructure, semiconductor expertise, and support from the state government and Purdue University.
The plant is expected to create more than 1,000 jobs.
The company also plans to collaborate with Purdue on research projects related to advanced packaging and memory-centric computing.
It will invest in training programs with Purdue and Ivy Tech Community College to develop a skilled workforce.
