SK hynix signs agreement with US Department of Commerce for advanced packaging plant in Indiana

SK hynix has announced it has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce.

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The South Korean memory giant will receive up to $450 million in proposed direct funding and access to proposed loans of up to $500 million as part of the CHIPS and Science Act, which will go towards its investment to build a production base for semiconductor packaging in Indiana, USA.

Not only that, but SK hynix also plans to seek from the US Department of Treasury a tax benefit equivalent of up to 2% of the qualified capital expenditures through the Investment Tax Credit program. SK hynix has said that it "deeply appreciates" the US government's support, and that it will comply with the requirements for the remaining procedures until the proposed funding is finalized.

SK hynix has also said that it will proceed with the construction of its new advanced packaging plant in Indiana in order to meet the demands of AI memory products, and through this, the South Korean memory giant said it looks forward to contributing to build a more resilient supply chain for the global semiconductor industry.

SK hynix CEO Kwak Noh-Jung, said: "We deeply appreciate the U.S. Department of Commerce's support and are excited to collaborate in seeing this transformational project fully realized. We are moving forward with the construction of the Indiana production base, working with the State of Indiana, Purdue University and our U.S. business partners to ultimately supply leading-edge AI memory products from West Lafayette. We look forward to establishing a new hub for AI technology, creating skilled jobs for Indiana and helping build a more robust, resilient supply chain for the global semiconductor industry".