March 28, 2024 /SemiMedia/ -- According to insiders, SK Hynix plans to invest $4 billion to build an advanced chip packaging factory in Indiana, USA.

The new SK Hynix factory, located adjacent to Purdue University, is expected to create about 800 to 1,000 jobs, insiders said.

The factory is scheduled to start operations in 2028, and SK Hynix’s board of directors will soon vote on the construction plan to finalize this decision. SK Hynix chose Indiana as the location to build the factory, in part because Purdue University could provide a large pool of skilled engineers.

It is estimated that the cost for SK Hynix to build a packaging factory in the United States will be about 30% to 35% higher than building a similar factory in South Korea. However, SK Hynix will receive state and federal tax incentives and other forms of support to fund its plans to build the factory, which will help offset some of the increased costs.