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SK Hynix, an Nvidia supplier, will invest $3.87 billion in a US chip packaging facility.

 SK Hynix, an Nvidia supplier, will invest $3.87 billion in a US chip packaging facility.

SK Hynix logo

FILE PHOTO: On April 25, 2016, the SK Hynix logo is visible at the company's headquarters in Seongnam, South Korea. Kim Hong-Ji/File Photo via REUTERS.

SEOUL: On Wednesday, SK Hynix, the second-biggest memory chip manufacturer in the world, announced that it would invest about $3.87 billion to construct an advanced packaging plant and an AI product research and development facility in the U.S. state of Indiana.

The Nvidia supplier stated in a statement that the new facility will have a sophisticated chip production line to mass-produce next-generation high bandwidth memory (HBM) chips, which are currently utilized in graphic processing units that train artificial intelligence systems.

It is anticipated that mass manufacturing will begin in the second half of 2028. There will also be a packaging R&D line at the new location in West Lafayette, Indiana.

According to CEO Kwak Noh-Jung, the facility "will help strengthen supply chain resilience" for AI chips in the United States.

The chip makers choice was influenced by the region's Purdue University's engineering talent pool, chip manufacturing infrastructure, and state and local government backing, according to the statement.

SK promised to invest $15 billion in the semiconductor industry by 2022 through materials, R&D programs, and the establishment of a cutting-edge testing and packaging facility in the United States.

The newest HBM chip version, known as HBM3E, went into commercial manufacturing last month, and initial shipments, according to insiders, are going to Nvidia.

With 80% of the market for AI processors, Nvidia has only received the HBM3, the version that was previously in use, from SK Hynix.


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