SK hynix has broken ground on the first high-bandwidth memory (HBM) production base in the United States, a move set to bring assembly of a critical AI component onto American soil for the first time. The company held a groundbreaking ceremony this week for its facility in West Lafayette, Indiana, and plans to begin construction shortly.
HBM ranks among the most important building blocks of modern AI systems, and until now it has not been assembled domestically. That changes in 2029, when SK hynix expects to start packaging next-generation HBM modules at the new Indiana site.
What the Indiana Plant Will Build
The West Lafayette facility will focus on advanced packaging, testing, and research and development for HBM. The project carries a price tag of roughly EUR 3 billion, reflecting both its advanced capabilities and its scale. SK hynix expects to open the cleanroom by October 2028 and begin volume production of next-generation HBM in the second half of 2029, about a year later than originally planned. Once commercial operations begin, the site is projected to employ around 1,000 people.
Despite being described as an HBM production base, the plant will not manufacture DRAM wafers. Instead, it will package HBM stacks using DRAM wafers produced in South Korea and base dies made in South Korea, Taiwan, or the United States. Even so, SK hynix intends to market the finished devices as its first U.S.-made next-generation HBM products. Assembling stacks closer to American customers could prove valuable as custom HBM-class memory gains traction later in the decade, shortening the feedback loop between the company and its clients.
R&D Testbed and Purdue Partnership
Alongside the packaging and testing plant, SK hynix will set up an Advanced Packaging R&D Testbed next to the manufacturing lines. The facility is designed to let the company collaborate with customers, universities, and commercial partners on future packaging technologies, build prototypes, and quickly validate their performance and manufacturability in a real production environment. In the era of customized HBM, that capability could become a meaningful competitive edge.
SK hynix also signed a memorandum of understanding with Purdue University to jointly research system integration and advanced packaging technologies, including HBM.
“The United States is the epicenter of AI innovation, bringing together premier customers, top-tier R&D capabilities, and partners and Indiana fab will become a gateway to deliver first Made in USA HBM products,” said Kwak Noh-Jung, CEO of SK hynix. “We will expand our investments and collaboration in the U.S., grow together, and become the most trusted partner in shaping the future of AI in America.”
SK hynix expects volume production of next-generation HBM at the Indiana site to begin in the second half of 2029.
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Image: tomshardware.com
