$450 Million Allocated in CHIPS Act Funding for Indiana Chip Plant - Boosting Tech Industry in the State

A Korean semiconductor company has secured $450 million from the CHIPS and Science Act to support the construction of a cutting-edge fabrication and research facility in West Lafayette, Indiana. SK Hynix received the funding from the Commerce Department for a new facility specializing in producing high-bandwidth memory chips crucial for high-performance computing and AI applications. These chips can process 1.18 terabytes of data per second, equivalent to streaming 230 HD movies simultaneously, making them vital for GPUs. The plant is expected to be operational in the second half of 2028 and will generate around 1,000 jobs. SK Hynix can claim tax credits up to 25% of its investments, in addition to the $450 million funding and access to $500 million in loans from the CHIPS Program Office. The company will collaborate on R&D projects with Purdue University, focusing on advanced packaging solutions, an area slated for $1.6 billion in government research funds. SK Hynix's CEO expressed excitement about establishing a hub for AI technology in West Lafayette, creating jobs and strengthening the semiconductor supply chain. SK Hynix joins other semiconductor firms like Samsung, Micron, Intel, and Taiwan Semiconductor Manufacturing Company in expanding U.S.-based chip production, with GlobalWafers recently awarded $400 million for new manufacturing facilities. This announcement enhances America's AI hardware supply chain, positioning the country as a global leader in advanced semiconductor manufacturing and packaging.