The U.S. Commerce Department announced plans to grant SK Hynix up to $450 million to support the construction of an advanced packaging plant and an artificial intelligence research and development facility in Indiana. This project, estimated to cost $3.87 billion, will include a production line for next-generation memory chips used in AI systems.
The department also intends to offer $500 million in government loans and a 25% investment tax credit for the project. This initiative is expected to create 1,000 jobs and address a critical gap in the U.S. semiconductor supply chain.
This announcement is part of a broader $39 billion subsidy program approved by Congress in 2022 to bolster U.S. semiconductor manufacturing and related components. The program also includes $75 billion in government lending authority.
Commerce Secretary Gina Raimondo highlighted that the department has offered term sheets to 15 companies, totaling approximately $30 billion in funding, which is expected to attract an additional $300 billion in private investment.
TSMC, Intel, Samsung Electronics, Micron, and SK Hynix. This, according to Raimondo, will ensure the U.S. has the most secure and diverse supply chain for advanced semiconductors, which are crucial for artificial intelligence.
SK Hynix CEO Kwak Noh-Jung expressed gratitude for the support and enthusiasm for collaborating on this transformative project.
In May, the Commerce Department announced plans to award $75 million to Absolics for building a facility in Georgia to supply advanced materials to the U.S. semiconductor industry. This planned award is to an affiliate of SKC, a petrochemical giant that is part of South Korea's second-largest conglomerate, SK Group, which also includes SK Hynix.