SK hynix to receive up to $450 million for Indiana facility
SK hynix has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to USD 450 million in proposed direct funding and access to proposed loans of USD 500 million as part of the CHIPS and Science Act for its investment to build a production base for semiconductor packaging in Indiana.
Separately, SK hynix says that it plans to seek a tax benefit equivalent of up to 25% of the qualified capital expenditures through the Investment Tax Credit program via the U.S. Department of the Treasury.
The South Korean company also said that it will proceed with the construction of the Indiana base as planned to in order to be able to provide AI memory products as planned.
The signing follows SK hynix’s announcement back in April that it plans to invest USD 3.87 billion to build a production base for advanced packaging in Indiana in a move expected to create around 1,000 jobs.
“We deeply appreciate the U.S. Department of Commerce’s support and are excited to collaborate in seeing this transformational project fully realized,” said SK hynix CEO Kwak Noh-Jung, in a press release. “We are moving forward with the construction of the Indiana production base, working with the State of Indiana, Purdue University and our U.S. business partners to ultimately supply leading-edge AI memory products from West Lafayette. We look forward to establishing a new hub for AI technology, creating skilled jobs for Indiana and helping build a more robust, resilient supply chain for the global semiconductor industry.”
