SK hynix receives U.S. Commerce Department approval for $458 million CHIPS Act subsidy

     The U.S. Department of Commerce has announced approval for a grant of up to $458 million and a $500 million loan to SK hynix to support its advanced chip packaging facility in Indiana. This subsidy is part of the U.S. efforts to strengthen its domestic semiconductor supply chain.

The final agreement amount is slightly higher than the preliminary agreement announced in August, meaning SK hynix can begin receiving funds once its project meets the agreed milestones. The new packaging facility, which is part of a $3.87 billion investment, will focus on packaging chips transported from SK hynix’s facilities in South Korea to the U.S.

This move is part of SK hynix's broader $15 billion investment commitment in semiconductor packaging and other research projects globally. As one of the top three manufacturers of high-bandwidth memory (HBM) chips, which are critical to powering artificial intelligence (AI) software, SK hynix plays a key role in meeting the growing demand for AI computing. The company leads in launching new chip products, surpassing its competitor Samsung Electronics, and is a major supplier to Nvidia. While SK hynix will continue chip production in Asia, its expansion of packaging operations in the U.S. signals its intent to diversify its geographic footprint.

Secretary Raimondo emphasized, "By investing in global leader SK hynix and collaborating with Purdue University, we will solidify the U.S. AI hardware supply chain in a way that no other country can match, creating hundreds of jobs in Indiana and ensuring that the state plays a crucial role in advancing the U.S. economy and national security."