A new road and SK hynix's chip plans move ahead in West Lafayette

The city kept moving forward Wednesday, amid Trump’s CHIPS Act disdain. And reports show the South Korean company is, too, on its $3.87B facility in the Purdue Research Park.

• Thanks today for ongoing help from Based in Lafayette sponsor Long Center for the Performing Arts in downtown Lafayette. For tickets and details on all the shows and events, go to longpac.org.

---

A NEW ROAD AND SK HYNIX’S CHIP PLANS MOVE AHEAD IN WEST LAFAYETTE

Prep work continued Wednesday on a West Lafayette project tied to the anticipated groundbreaking on an SK hynix chip packaging and research facility, as city leaders and U.S. Sen. Todd Young continued to be confident the South Korean firm would follow through with the $3.87 billion project.

That day, company officials told Based in Lafayette that SK hynix still planned to be ready for mass production by late 2028, as announced in 2024.

Questions had been swirling since last week, when President Donald Trump said during a joint address to Congress that the CHIPS and Science Act should be scrapped, with the remaining money going to pay down the debt or some other way Congress saw fit. Trump called the $52 billion Biden era legislation “horrible,” saying he intended to get commitments for manufacturing in the U.S. without CHIPS Act-styled incentives.

In play: SK hynix had commitments from the Biden White House in August 2024 that it would get $458 million in federal CHIPS Act money as it makes plans to build its chip packaging and research facility at the Purdue Research Park in West Lafayette. The U.S. Department of Commerce also announced in 2024 that SK hynix would have access to up to $500 million in loans to support a proposed 430,000-square-foot facility expected to create 800 to 1,000 jobs.

Since then, it’s not been clear how much of that money might be in jeopardy.

U.S. Sen. Todd Young, an Indiana Republican who carried the CHIPS Act and has been among its top cheerleaders, last week said he was trying to get clarification from the White House about Trump’s comments. As other Republicans in Congress cast doubt on the chances of repealing the legislation, Young said last week that he was ready to work with the Trump administration to make changes, if necessary, to keep pushing to bring chip production to the United States as a national security issue.

On Wednesday, a spokesman said Young was still working on the issue.

“Sen. Young continues to have constructive conversations with the administration about the future of the CHIPS program and feels confident the SK hynix project will continue to move forward as planned,” Matt Lahr, Young’s communication director, said.

SK hynix officials have not commented about the CHIPS Act incentives. They declined to comment on that again Wednesday.

Last week, Mayor Erin Easter told Based in Lafayette that the city had faith that SK hynix’s intentions to invest in West Lafayette was real and that the city would continue to prepare for the South Korean company, even as things got sorted out on funding questions and other logistics.

On Wednesday, more of that happened.

The West Lafayette Redevelopment Commission approved up to $10,000 to American StructurePoint for advance design and environmental work for County Road 425 North, a new road connecting Yeager Road and Soldiers Home Road. The road, between Kalberer Road and County Road 500 North, is being designed as a major collector road that will include three lanes for traffic, along with storm sewer, curb, sidewalk and trail work. According to the contract, construction is expected to start as early as March 2026, with County Road 425 North open by fall 2027.

The road is expected to serve growing residential subdivisions between Salisbury Street/County Road 50 West and Soldiers Home Road.

Between Salisbury Street and Yeager Road, 425 North would cut through Purdue Research Park land being groomed as home to suppliers expected to follow SK hynix, which will be situated on the west side of Yeager Road, north of Kalberer Road.

Purdue Research Foundation will take a rezoning request for 134 acres north of Kalberer Road, between Salisbury Street and Yeager Road, to the Area Plan Commission on March 19. (For more on that request, which would rezone the land from residential use to heavy industrial and neighborhood business uses, here’s a look from coverage last week in BiL.) The West Lafayette City Council would get the final say, as early as its April 7 meeting.

(Photo: Dave Bangert)

That request is facing some pushback from residents in nearby neighborhoods, where a petition has cropped up raising concerns about a heavy industrial zoning for the property in PRF’s request. The petition had more than 800 signatures as of Wednesday afternoon, ahead of next week’s APC hearing.

On Wednesday, Larry Oates, president of the West Lafayette Redevelopment Commission, acknowledged there were questions about the SK hynix project, given the situation in Washington, D.C. Oates leaned on Easter’s comments from last week.

“The basic bottom line on this is that if the SK hynix project continues … and, right now, we're planning for it to do so, we are going to need this road as part of that,” Oates said.

In a related move: The West Lafayette Redevelopment Commission on Wednesday again tabled a measure that would remove a 90-acre parcel from a city tax increment finance district for what’s called an Innovation Development District. The move would clear the way for the Indiana Economic Development Corp.’s offer of hundreds of millions of dollars in Innovation Development District tax rebates to SK hynix. As of Wednesday, negotiations continued over the details of an agreement between the city and the IEDC. As in recent months, the redevelopment commission has indicated the delay in the final vote was meant to protect the city and Tippecanoe School Corp. until a deal is finalized that would make sure costs are covered related to roads, wastewater treatment and other infrastructure tied to the SK hynix facility.

For more about that process and what’s at stake for the city and the for project: “Vote clearing way for IEDC’s SK hynix incentives put on hold, as WL awaits deal,” Jan. 17, BiL.

Thanks, again, for ongoing help from Based in Lafayette sponsor Long Center for the Performing Arts in downtown Lafayette. For tickets and details on all the shows and events, go to longpac.org.

Thank you for supporting Based in Lafayette, an independent, local reporting project. Free and full-ride subscription options are ready for you here.

Tips, story ideas? I’m at davebangert1@gmail.com.