SK Hynix Shows Interest in US Packaging Plant... Kwak No-jeong: "We Will Maintain HBM Competitiveness"

WSJ Reports Site Confirmed in Indiana, USA
SK Hynix States "Nothing Confirmed"
Affirms "Maintaining HBM Competitiveness" at Shareholders Meeting

SK Hynix is reported locally to be building an advanced packaging factory in Indiana, USA. SK Hynix maintains its position that no decision has been made yet. SK Hynix announced through its shareholders' meeting that it will strengthen its competitiveness in high-bandwidth memory (HBM) for the artificial intelligence (AI) era.

SK Hynix Icheon Campus Main Gate / Photo by SK Hynix

The Wall Street Journal (WSJ) reported on the 26th (local time), citing local sources, that SK Hynix will unveil an advanced semiconductor packaging factory in West Lafayette, western Indiana. It was also explained that SK Hynix will invest $4 billion to build the factory and start operations in 2028. Additionally, it was added that the related decision will soon be approved by the board of directors.

According to foreign media, SK Hynix initially planned to build the factory in Arizona but ultimately chose Indiana considering the advantage in securing manpower. West Lafayette, Indiana, is home to Purdue University, which operates the largest semiconductor and microelectronics program in the United States.

Regarding the foreign media reports, SK Hynix stated, "We are reviewing site selection but nothing has been finalized." However, due to the importance of the packaging factory, foreign media reports related to the site continue. The UK Financial Times also reported this month that SK Hynix selected a semiconductor packaging factory site in Indiana.

Inside and outside the semiconductor industry, it is expected that SK Hynix will strengthen its competitiveness in HBM, a memory semiconductor for AI, through the advanced semiconductor packaging factory to be established in the United States. Dylan Patel, senior researcher at the US semiconductor consulting firm SemiAnalysis, predicted, "SK Hynix's factory will be the first major facility for large-scale HBM packaging in the United States."

On the 27th, SK Hynix held its 76th shareholders' meeting at its headquarters campus in Icheon, Gyeonggi Province, and resolved eight agenda items including the appointment of directors, approval of financial statements, and amendments to the articles of incorporation. Newly appointed outside directors include semiconductor expert Professor Son Hyun-chul from Yonsei University and accounting and finance expert Professor Yang Dong-hoon from Dongguk University. The internal director position will be taken by Ahn Hyun, head of SK Hynix Solution Development, replacing Vice Chairman Park Jung-ho, whose term ended.

SK Hynix President Kwak No-jung emphasized on the day, "Although we recorded a loss on an annual basis last year, we reduced losses each quarter through responding to AI memory demand and cost reduction," adding, "Finally, in the fourth quarter (last year), we succeeded in turning a profit for the first time in the memory industry."

He also explained, "This year, the memory market is recovering through demand improvement and supply stabilization after a recession." He continued, "AI has had a significant impact on the memory market recovery, and as AI services evolve into multimodal forms, memory capacity will expand significantly," adding, "We will maintain competitiveness in HBM in the market."

This content was produced with the assistance of AI translation services.