SK Hynix Breaks Ground on $3.87 Billion U.S. Semiconductor Facility to Boost AI Memory Leadership

Reporter Kim Jisun / approved : 2026-04-22 06:49:11
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Photo courtesy of Yonhap News

 

[Alpha Biz= Kim Jisun] SK Hynix has officially begun construction of a large-scale semiconductor production base in the United States, valued at approximately KRW 5.7 trillion ($3.87 billion). The company aims to strengthen its leadership in advanced memory by producing high-bandwidth memory (HBM) and other AI-focused semiconductors locally, supplying them directly to major customers, including NVIDIA, in the U.S. market.

According to industry sources on April 21, SK Hynix initiated piling work on April 17 (local time) for its advanced semiconductor packaging facility in West Lafayette. Piling is a foundational construction process that involves driving support columns into the ground. This marks the full-scale start of construction for the so-called Indiana fab, which will span approximately 560,000 square meters.

The company plans to begin operations at the Indiana facility in the second quarter of 2028, establishing it as its first semiconductor production base in the United States. Alongside its existing fabs in Cheongju and Icheon, SK Hynix will manufacture key products such as HBM domestically and in the U.S., supplying them directly to local Big Tech customers. The facility is expected to focus on next-generation HBM products, including HBM4E and HBM5, scheduled for release after next year.

In South Korea, SK Hynix is also advancing construction of four mega-scale fabs within the Yongin semiconductor cluster, with the first plant set to begin operations in February next year. This expansion is aimed at increasing output of core products like HBM and strengthening competitiveness against rivals such as Samsung Electronics and Micron Technology.

Additionally, SK Hynix plans to establish a dedicated U.S.-based subsidiary, tentatively named “AI Company,” to lead its artificial intelligence investments. Through closer collaboration with global tech firms, the company intends to expand beyond memory manufacturing into broader AI solutions.

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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