U.S. Grants SK Hynix $450 Million for New Chip Facility

The U.S. is providing SK Hynix with $450 million for a new chip plant in Indiana, which will produce specialized chips for AI, similar to those used in Nvidia's graphics cards. SK Hynix intends to invest $3.87 billion in the project.

In addition to the grant, the U.S. government is offering $500 million in loans and a 25% tax break. This new facility is expected to create 1,000 jobs and bolster the U.S.'s competitiveness in the global chip market.

Last year, Congress approved a $39 billion subsidy for U.S. chip manufacturers. The Commerce Department has already allocated $30 billion to 15 companies, which is anticipated to draw $300 billion in private investment.

All five major chip manufacturers—TSMC, Intel, Samsung, Micron, and SK Hynix—are now establishing operations in the U.S. Commerce Secretary Gina Raimondo believes this will make the U.S. supply chain for advanced chips the most secure globally.

SK Hynix CEO Kwak Noh-Jung expressed appreciation for the support and enthusiasm for the project. The U.S. is also providing $75 million to Absolics for a materials plant in Georgia, which is vital for the semiconductor industry.