SK Hynix Expands HBM Production in Indiana
South Korean semiconductor company SK Hynix, the world’s largest memory chip supplier, announced on August 27, 2023, that it has broken ground on a $4 billion High Bandwidth Memory (HBM) facility in West Lafayette, Indiana. The project, supported by approximately $458 million in CHIPS Act funding and $500 million in loans, aims to commence mass production of next-generation HBM by late 2029.
SK Hynix holds a ~55% market share in the HBM sector, primarily serving AI hardware providers such as NVIDIA. The company is experiencing significant demand, with earnings per share projected to more than double by 2025 as annual revenue increases by 42% year-over-year, while gross profit margins exceed 70%.
This expansion aligns with U.S. efforts to onshore semiconductor manufacturing amid escalating trade tensions with China, positioning SK Hynix for a strong role in the AI supply ecosystem as memory bandwidth challenges continue to impact hardware performance.
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