SK hynix starts construction of first US HBM assembly facility in Indiana
SK hynix held a groundbreaking ceremony for its HBM production base in West Lafayette, Indiana, which will focus on advanced packaging, testing, and R&D. The $4 billion facility is expected to open its cleanroom by October 2028 and begin volume production of next-generation HBM in the second half of 2029. The plant will package DRAM wafers made in South Korea, and is expected to employ around 1,000 people.
The Indiana campus will handle only the packaging and testing stages of HBM production, with DRAM wafers shipped from SK hynix's South Korean fabs. Base dies may come from South Korea, Taiwan, or the U.S., yet the finished stacks will be marketed as the company's first American-made next-generation HBM products. The site also includes an Advanced Packaging R&D Testbed, allowing SK hynix to collaborate with customers, universities, and partners on prototype development and validation in a production setting.
SK hynix has additionally signed a memorandum of understanding with Purdue University to research system integration and advanced packaging technologies. The company's CEO framed the facility as a gateway for delivering U.S.-made HBM, noting that proximity to American customers shortens feedback loops—particularly valuable as demand for customized HBM-class memory grows in the latter half of the decade.
This facility could reshape the geography of AI hardware supply chains, reducing U.S. dependence on overseas assembly for a critical component. American AI companies and data center operators may benefit from faster iteration cycles and more responsive customization, potentially accelerating AI development. The roughly 1,000 jobs in Indiana represent modest but meaningful local economic impact. However, the 2029 production timeline means near-term supply dynamics remain unchanged, and the broader societal effects—from AI cost structures to regional employment—will depend on how quickly this model proves viable.