Top 5 Chipmakers Invest in U.S., SK Hynix Gets $4.5B

The U.S. government has announced a substantial financial commitment to SK Hynix, providing $4.5 billion in subsidies and loans to support the construction of a state-of-the-art chip packaging and research facility in Indiana. This investment is set to enhance America's capabilities in the critical area of AI semiconductor production and is considered a landmark achievement in revitalizing the U.S. semiconductor industry.

Commerce Secretary Gina Raimondo highlighted that this initiative is part of a broader strategy to secure investments from the world's leading semiconductor manufacturers. Alongside SK Hynix, companies such as Intel, TSMC, Samsung Electronics, and Micron have committed to establishing chip production facilities in the U.S., aided by federal financial support. Raimondo noted, "These companies represent the top tier of global semiconductor production, capable of manufacturing advanced chips at scale."

The new $3.87 billion facility by SK Hynix will focus on packaging high-bandwidth memory (HBM) chips, essential for AI technology applications, including those used by major companies like NVIDIA. SK Hynix plans to transport its memory chips from South Korea to the new U.S. plant, which is expected to generate approximately 1,000 new jobs. Additionally, the company will benefit from a 25% tax credit, consistent with incentives provided to other firms investing in U.S. manufacturing.

Raimondo emphasized the strategic importance of this investment, describing it as a "significant development" that will contribute to building the most secure and diverse semiconductor supply chain globally. Advanced memory chips from SK Hynix are pivotal in powering AI advancements.

SK Hynix aims to consolidate its leadership in HBM chip supply, particularly for NVIDIA, and to maintain its competitive edge over rivals Samsung Electronics and Micron. This initiative is part of a broader U.S. effort to strengthen domestic chip production and reduce dependence on international sources.

With the inclusion of SK Hynix's funding, the CHIPS Act has now allocated over $30 billion of the $39 billion designated for domestic semiconductor manufacturing, supplemented by $75 billion in loans. This support is crucial for reducing reliance on foreign semiconductor supplies.

In addition to NVIDIA, SK Hynix serves major clients such as Apple, Microsoft, and Alphabet. The company's commitment includes up to $15 billion in investments for U.S.-based packaging and research projects, marking a significant step in its strategic expansion in the American market.