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Our economy is on the verge of a tech transition that will surpass the most transformative innovations of our time, including the internet, pharmaceuticals and smartphones. This fundamental change will be driven by artificial intelligence and is positioned to reshape every aspect of our lives and work.
At the heart of this revolution are microchips, the driving force behind AI, powering nearly every major sector of the global economy. Their significance is immense—if it has an on/off switch, it runs on microchips. But not all chips are created equal, and high-bandwidth chips are at the heart of AI computing. This is what makes SK Hynix, a leading supplier of such chips, so important to Indiana’s future.
In a decisive move to strengthen critical tech industries, the U.S. Department of Commerce recently committed up to $450 million in grants and $500 million in loans to support SK Hynix’s planned facility in West Lafayette. When combined with Indiana’s job-creation incentives of up to $700 million, the total public investment in SK Hynix reaches $1.1 billion.
With such a significant commitment, it’s only natural to ask: Is this all worth it?
With all respect to other vital business development commitments from other companies in critical industries, the answer is an unequivocal “yes.” Given the impact of the critical role high-bandwidth chips play in enabling AI, no commitment is more transformational than SK Hynix.
The story of how Indiana was able to land SK Hynix’s commitment is long, with too many noble players and factors to ever cover in a short column. However, world-class technical proficiency with semiconductors at Purdue University in conjunction with top-tier talent producers like the University of Notre Dame, Rose-Hulman Institute of Technology, Indiana University, Ivy Tech Community College and others were core to the Indiana story.
That same narrative is why Applied Research Institute was able to lead a successful bid to host the Midwest’s Silicon Crossroads Microelectronics Commons. The hub will bring together more than 200 members of the semiconductor industry and has secured roughly $33 million to support applied development of breakthrough technologies in year one alone. And this effort now boasts SK Hynix as one of the contributing members.
Political leaders also play a critical role. None of this could have happened without U.S. Sen. Todd Young’s work on the passage of the CHIPS and Science Act, Gov. Eric Holcomb’s commitment to working with pragmatic members of the current administration willing to work across the political aisle, and the Indiana Economic Development Corp.’s commitment over the past 2-1/2 years to earnestly pursue semiconductor companies.
Although other recent announcements include larger employment numbers and capital expenditures, SK Hynix’s commitments are impressive at roughly 1,000 employees and more than $4 billion in capital investment. But the transformational promise of positioning Indiana as the epicenter of AI chip production is a truly unprecedented opportunity. That is why ARI was honored to have played a role in recruiting SK Hynix to Indiana.
We should all be excited to support the company’s growth and success here while looking forward to even more commitments that will shape Indiana’s future.•
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Roberts is CEO of Bloomington-based Applied Research Institute.
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