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SK hynix Breaks Ground on $4 Billion Indiana HBM Packaging Hub

The facility will bring U.S. packaging, testing and R&D for high-bandwidth memory to Purdue’s research park to help address AI memory shortages.

Overview

  • SK hynix held a groundbreaking Thursday, Aug. 27, 2026, for a more-than-$4 billion advanced packaging and R&D hub at Purdue Research Park in West Lafayette, Indiana.
  • The project has secured up to $458 million in CHIPS Act grants and up to $500 million in federal loans, along with state incentives, to help fund construction and R&D.
  • The Indiana site will focus on advanced packaging, testing and R&D rather than front-end wafer fabrication, and will receive DRAM wafers from SK hynix fabs overseas while creating about 1,000 permanent jobs and roughly 7,000 direct and indirect positions during build and operation.
  • SK hynix targets cleanroom operations in the second half of 2028, with mass production of next-generation HBM and a planned HBM4E ramp scheduled for the second half or third quarter of 2029.
  • The move strengthens U.S. supply-chain capacity for HBM at a time SK hynix controls roughly 56–58% of the HBM market and warns shortages may persist through 2030, though analysts flag execution, timing and demand-cycle risks from the company’s large global investment program.