SK hynix will get $458M in CHIPS money for West Lafayette facility

White House finalizes CHIPS funding Thursday, will go toward South Korean firm’s $3.87B plans in the Purdue Research Park

Dec 19, 2024

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SK HYNIX GETS $458M IN CHIPS ACT MONEY FOR WEST LAFAYETTE FACILITY

SK hynix will get $458 million in federal CHIPS and Science Act money as it make plans to build a $3.87 billion chip packaging and research facility at the Purdue Research Park in West Lafayette, White House officials announced Thursday morning.

The word from the U.S. Department of Commerce comes four months after federal officials announced preliminary agreement with similar terms for the South Korean semiconductor giant. The initial amount was listed in August at $450 million.

The announcement also is included up to another $500 million in federal loans for SK hynix from the CHIPS and Science Act. The 2022 measure includes $52.7 billion for American semiconductor research, development, manufacturing and workforce development as an effort to avoid supply-chain interruptions and the potential political whims of overseas manufacturers.

SK hynix will have to complete project milestones to get the money, according to the U.S. Department of Commerce.

SK hynix in April announced plans to bring production of high-bandwidth memory used to feed the artificial intelligence market to West Lafayette by the second half of 2028 and eventually create an estimated 1,000 jobs. The facility would be near Yeager Road, about a half-mile north of Kalberer Road.

“By investing in companies like SK hynix and communities like West Lafayette, the bipartisan CHIPS and Science Act continues to supercharge America’s global technology leadership,” U.S. Secretary of Commerce Gina Raimondo said in a release Thursday. “With this investment in SK hynix – the world’s leading producer of high-bandwidth memory chips – and their partnership with Purdue University, we are solidifying America’s AI hardware supply chain in a way no other country on Earth can match.”

The SK hynix facility is expected to mass produce high-bandwidth memory that works with advanced graphic-processor units to get the data-processing speed for generative AI applications, with the ability to process up to 1.18 terabytes of data a second, according to company and federal information. The facility also will include an R&D component to develop future generations of chips, according to Purdue.

“Bringing semiconductor manufacturing back to the United States is a national security imperative and is among the primary goals of the CHIPS and Science Act,” U.S. Sen. Todd Young, an Indiana Republican who carried the CHIPS and Science Act, said.

“Today’s announcement further opens the door for Hoosier workers to play a critical role in building our high-tech future while contributing to our national security and ensuring against future supply chain disruptions,” Young said. “This is an exciting day for SK hynix, Indiana and our nation.”

“SK hynix looks forward to collaborating with the U.S. government, the state of Indiana, Purdue University and our U.S. business partners to build a robust and resilient AI semiconductor supply chain in the U.S.,” SK hynix CEO Kwak Noh-Jung said in a release from the White House.

Before the CHIPS Act funds, Indiana and other players offered an incentive package that included Indiana Economic Development Corp. offers of up to $554.7 million in Innovation Development District tax rebates, up to $80 million in what the IEDC called conditional structured performance payments and up to $45 million through the Industrial Development Grant Fund to support infrastructure improvements surrounding the new plant.

Purdue Research Foundation and Purdue University offered incentives and in-kind services valued at approximately $60 million, including discounted land pricing for 90 acres with an option to expand on an additional 30 acres, to support production, R&D and talent and supply chain development, according to terms announced in April.

Purdue President Mung Chiang said this in a statement Thursday: “Since SK hynix announced their $3.87 billion investment at Purdue Research Park this April, the world of AI and semiconductors has continued to advance rapidly. With the world-leading memory chips for AI products and with the unique step of advanced packaging in the chips supply chain, this Silicon Heartland ecosystem is now coming to fruition to strengthen the foundation for national and economic security. In what is becoming one of the largest tech production facilities on any university campus, Purdue will partner closely with SK hynix and its suppliers and customers to create jobs, workforce and research innovation along America’s Hard Tech Corridor.”

Meanwhile, the West Lafayette Redevelopment Commission postponed what was expected to be a final vote Wednesday morning on reconfigured tax increment finance districts in the northern portion of the city – a move expected to clear the way for the IEDC’s Innovation Development District on the SK hynix tract. The proposal also is expected to set up areas of the city for SK hynix suppliers expected to follow the chip facility.

City officials said Wednesday they asked for the delay to work out more details and would bring it back for a vote at the redevelopment commission’s meeting Jan. 15.

For more on that plan and how the Innovation Development District works: “WL clears way for IEDC’s SK hynix incentives, still negotiating city’s share.”

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PROGRAMMING NOTE …

WHAT’S ON YOUR A HOLIDAY PLAYLIST?

We still have shuffle playing the Based in Lafayette Holiday/Seasonal Playlist, now with more than seven hours of music and growing every day, thanks to BiL readers.

Today’s picks come from …

Larry Guentert

Larry Guentert is a local percussion instructor and a retired engineer. He plays in several local bands.

“Good King Wenceslas” and “Coventry Carol,” Loreena McKennitt – These are by Canadian musician Loreena McKennitt, who has strong Celtic and world music influences. Her songs all have Irish flute, harp, bagpipes and more, supporting her gorgeous vocals which float over mesmerizing Celtic grooves.

“I Believe in Father Christmas,” Greg Lake – By prog rocker Greg Lake, whom you may remember from the band Emerson, Lake and Palmer. Listen closely to his guitar, lush vocals and interesting lyrics in this holiday tune. This song should be on everyone's playlist.

“O Come, O Come, Immanuel,” David Friesen – Multi-instrumentalist David Friesen is mostly known for playing experimental upright bass with lots of cool effects, but on this song, he plays the flute.

Your turn: What’s on your list?

What three songs are going into your holiday/seasonal playlist this year? If you’re game to share, here’s all we need:

Three songs and the artists.
One or two sentences about why you chose each one – could be a memory or a short history or review about why that track belongs in your mix and why you’d recommend it to others.
A little bit about you to let readers know who’s making the picks.

Send to: davebangert1@gmail.com

Thanks, again, for support from Purdue Convocations, offering deals for last-minute holiday gifts on the biggest spring shows, including Hadestown, TEDxPurdueU: Parallax, Pretty Woman: The Musical, Chicago, and “Vivaldi’s Four Seasons at 300” by Baroque chamber ensemble Les Arts Florissants. Get tickets and more details here.

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

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