SK Hynix CEO: Indiana to become key memory production base by 2030

WEST LAFAYETTE, Ind. — SK Hynix, the South Korean memory maker that has emerged as one of the biggest winners in the AI boom, held a groundbreaking ceremony Thursday for its first U.S. facility in Indiana. CEO Kwak Noh-Jung said the plant will make the state a "key HBM production base in America" by 2030.

Facility Details

• The $4 billion factory will focus on packaging rather than front-end manufacturing, meaning memory chips will be stacked and connected at this site.
• Chips will be manufactured in South Korea and China, with some then sent to Indiana for packaging.
• The first cleanroom, where packaging will take place, is scheduled to open in October 2028.
• Construction began in April 2026; Thursday's ceremony marked the formal kickoff.

Strategic Context

Speaking at Purdue University alongside Indiana Governor Mike Braun and other officials, Kwak emphasized the critical global shortage of high-bandwidth memory (HBM) driven by insatiable AI demand.

"We will provide our customers with a new source of made-in-U.S. HBM, while strengthening the U.S. semiconductor supply chain and contributing to national and economic security." — Kwak Noh-Jung, CEO, SK Hynix

SK Hynix is the HBM market share leader and is in the midst of a $720 billion buildout to expand production, with the vast majority taking place in South Korea, where the company is constructing the largest memory fab campus in the world. Production there will begin in February.

U.S. Investment and Market Presence

• SK Hynix listed shares on the Nasdaq in July, raising $26.5 billion — the most for any foreign company on U.S. markets.
• The stock trades slightly below its first-day close and has experienced volatility amid AI trade fluctuations and broader Korean market movements.
• SK Hynix's market cap has risen approximately sevenfold over the past year, topping $1 trillion.
• Total U.S. investments and assets are expected to exceed $45 billion by 2030, including a $10 billion "AI [investment initiative]."

Political and Industry Reactions

Commerce Secretary Howard Lutnick called on SK Hynix and rival Samsung in July to build front-end chip fabs in the U.S. Kwak said SK Hynix is looking for the right opportunity and is "open to every site or every country," adding that the company "will continue to expand its investment and cooperation in America."

Indiana Governor Mike Braun described the project as the "biggest development project in Indiana's history" and the "first of its kind in the country."

"For too long, the United States designed many of the world's most advanced chips, while allowing too much of the manufacturing ecosystem to migrate overseas. Breaking ground here today is evidence that that vision is being realized." — Senator Todd Young (R-Indiana)

In a July interview with CNBC, SK Group CEO Chey Tae-won said SK Hynix has been studying possible sites for more than a month: "I'm willing to do it, but the problem is that I really have to find the right place."

Alex Bedoya | CNBC