SK Hynix, the world's second-largest memory chip maker, held a groundbreaking ceremony for its $4 billion AI chip packaging facility at Purdue Research Park in West Lafayette, Indiana. The facility is expected to begin production in 2029, with Indiana becoming a key HBM (High Bandwidth Memory) production base in the United States by 2030.
CEO Kwak Noh-jung delivered a significant market warning alongside the construction announcement: the company expects the current memory chip shortage to last through the end of 2030. AI-driven demand is likely to keep the memory market undersupplied through the end of the decade, he said.
The Indiana facility will be closely integrated with SK Hynix's existing operations and will focus on packaging advanced HBM chips used in AI accelerators. The site was chosen partly for its proximity to Purdue University, which has a strong semiconductor engineering program.
The announcement comes amid a broader global push to localize semiconductor manufacturing, with companies across Asia investing in U.S. production facilities to reduce supply chain risks and qualify for CHIPS Act incentives.
