SK hynix is building a Korea-U.S. production belt for high-bandwidth memory, making HBM wafers in South Korea and completing advanced packaging and testing in the United States. The company aims to begin mass production of next-generation HBM at its Indiana plant in the third quarter of 2029, with capacity to process hundreds of thousands of wafers a year. With the first HBM advanced packaging base in the U.S., the company plans to close the distance to North American artificial intelligence customers and establish itself as a core link in the local AI chip supply chain.
Kwak Noh-jung, chief executive of SK hynix (000660.KS), said at a groundbreaking ceremony for the Indiana fab in West Lafayette, Indiana, on the 27th that the company plans to start mass production of next-generation HBM from the third quarter of 2029 and will secure capacity to process hundreds of thousands of wafers annually. It was the first time SK hynix disclosed a specific production timeline and output scale for the Indiana plant.
More than $4 billion, or about 5.5256 trillion won, will go into building the plant. Groundwork has already begun, and construction of core facilities starts in October. The cleanroom, the dust-free space required to manufacture chips, will be completed by October 2028, with full product output starting in the second half of the following year.
Kwak also laid out a specific production plan for 2030. Advanced HBM wafers made in South Korea will be shipped to Indiana for packaging and testing before being supplied to U.S. customers. The aim is to complete a Korea-U.S. division of labor that links large-scale memory production in South Korea with a packaging base in the United States.
The company is also building local research and supply chain operations. SK hynix signed a memorandum of understanding with Purdue University to jointly research HBM system integration and advanced packaging technology, and is expanding cooperation with major universities in the U.S. Midwest. It is in talks with more than 100 suppliers to create a local ecosystem for materials, parts and equipment.
SK hynix will also hire locally to strengthen competitiveness and contribute to the community. About 1,000 workers in production, engineering and research and development are expected to work at the Indiana plant. Including construction and supplier jobs, the company expects about 7,000 direct and indirect positions to be created. It will also run a separate recruitment program to help U.S. military veterans who served in South Korea find jobs at Korean companies operating locally.
SK Group's broader U.S. investment is expanding as well. Yoo Jeong-joon, vice chairman of SK Group, said the same day that SK's investment and assets in the United States are expected to exceed $45 billion, or about 62.163 trillion won, by 2030, and that the group will combine semiconductors, energy and advanced technology to support the buildout of next-generation AI infrastructure in the U.S.
Kwak said the investment will create an advanced memory supply chain in the United States and build a U.S. AI memory ecosystem in which technology, talent and industry grow together. He added that the company will continue to expand investment and cooperation in the U.S. to become the most trusted partner in shaping the future of the American AI industry.
