Construction site of SK hynix's Y1 chip factory in Yongin, Gyeonggi, is underway on Jan. 20. The fab is the first out of four factories SK hynix plans to build there.YONHAP
SK hynix will hold a groundbreaking ceremony on Aug. 27 for its advanced semiconductor packaging fab under construction in West Lafayette, Indiana, according to industry sources Wednesday.
SK hynix CEO Kwak Noh-Jung and other senior executives are expected to attend, and the possibility that SK Group Chairman Chey Tae-won and Nvidia CEO Jensen Huang will appear together at the event is generating interest.
The company has reportedly begun preparing for the ceremony, including sending invitations to major customers and partner companies. Senior SK hynix executives, including Kwak, as well as CEOs and officials from global tech companies are expected to attend.
SK hynix and Nvidia have maintained close ties as key suppliers of memory and GPUs, respectively, for global AI data centers. Chey and Huang have met several times in Korea and the United States since last year.
Should the SK Group chief attend the ceremony, onlookers will also pay attention to whether he announces additional semiconductor investment plans in the United States beyond the Indiana facility.
In an interview with U.S. media following SK hynix’s recent American depositary receipt (ADR) listing, Chey suggested that the company could consider building a memory fab in the United States if conditions involving power, water, work force and supply chains are in place.
The Korean firm also established AI Company, an AI solutions arm in the United States, earlier this year. Mounting pressure from the U.S. government on Korean chipmakers to expand investment there is expected to influence SK hynix’s future investment plans. U.S. Commerce Secretary Howard Lutnick recently called publicly on Samsung Electronics and SK hynix to expand memory chip production in the United States.
The headquarters of SK hynix in Icheon, GyeonggiYONHAP
SK hynix is investing $3.87 billion to build the advanced semiconductor packaging facility in West Lafayette. Concrete placement began in the first half of this year, and the company plans to move into full-scale structural construction following the groundbreaking ceremony.
The company aims to begin mass production of AI memory products, including high bandwidth memory, at the facility in the second half of 2028.
The U.S. government has agreed to provide SK hynix with up to $450 million in direct subsidies and $500 million in loans under the CHIPS Act.
BY JEONG JAE-HONG [kim.hayoon1@joongang.co.kr]
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
