SK hynix to get $458 mn funding for US chip facilities

President Joe Biden’s administration has finalized an award of up to $458 million for SK hynix, officials said Thursday, furthering efforts to lock in his legacy in boosting US semiconductor production before Donald Trump takes office.

The money supports a broader SK hynix investment of around $3.9 billion in Indiana, where the South Korean semiconductor firm is building facilities including a memory packaging plant for artificial intelligence products, said the Commerce Department.

US Commerce Secretary Gina Raimondo said “we are solidifying America’s AI hardware supply chain” with the move.

SK hynix is the world’s second-biggest maker of memory chips.

“This new facility will develop state-of-the-art advanced packaging, which is more and more important to US semiconductor leadership,” said Arati Prabhakar, assistant to the US president for science and technology.

The investment is expected to create some 1,000 new facility jobs, and there will also be a research hub set up via SK hynix’s partnership with Purdue University, the Commerce Department added.

Besides the direct funding of up to $458 million, the United States is also providing up to $500 million in loans to the company, through a loan authority under the CHIPS and Science Act.

The Biden administration has unveiled billions in grants through the CHIPS Act, and officials have been working to get deals across the finish line in recent weeks—before the new US administration enters the White House.

President-elect Trump has previously criticized the CHIPS Act, which the grant falls under. But a finalized award means that funds can start flowing as companies reach milestones.

Of more than $36 billion in proposed funding allocated, officials have finalized $26 billion so far.

Other companies whose agreements have also been firmed up in recent days include Taiwanese chip giant TSMC, GlobalFoundries, Intel and Micron Technology.

The United States makes some 10 percent of the world’s chips, with none being the most advanced, and Washington has been working to shore up the country’s chipmaking capabilities.

© 2024 AFP