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Federal officials confirmed early Thursday that South Korean chip manufacturer SK Hynix Inc. will receive up to $458 million in federal CHIPS Act funding to build its $3.87 billion semiconductor packaging facility at the Purdue Research Park in West Lafayette.
In August, the U.S. Department of Commerce and SK Hynix signed a non-binding preliminary memorandum of terms that laid the groundwork for a grant of up to up to $450 million. Thursday morning’s announcement is the result of a federal review of the project.
“With this investment in SK Hynix—the world’s leading producer of high-bandwidth memory chips—and their partnership with Purdue University, we are solidifying America’s AI hardware supply chain in a way no other country on Earth can match, creating hundreds of jobs in Indiana, and ensuring the Hoosier State plays an important role in advancing U.S. economic and national security, ” U.S. Secretary of Commerce Gina Raimondo said in written remarks.
The chip manufacturer announced plans in April to open a 430,000-square-foot building spanning 90 acres in the second half of 2028. Total employment at the site is expected to reach more than 1,000 by 2030.
The company’s CHIPS allocation is milestone-based, meaning the company will need to build to an agreed-upon scale to receive the full funding.
The 2022 CHIPS and Science Act a a $280 billion funding plan meant to trigger the innovation, research and manufacturing needed to ensure that the United States can supply its own defense equipment. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors. The law authorized $53 billion specifically for chip makers.
SK Hynix has also secured up to $700 million in incentives from the Indiana Economic Development Corp. At the time of SK Hynix announcement in April, that was the largest economic development incentives package in Indiana history.
SK Hynix also has access to $500 million in loans available to them through the CHIPS Program Office.
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