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SK Hynix aims to break ground on US chip packaging plant in early 2023

In a nutshell: SK hynix plans to build a future chip packaging plant in the U.S. as soon as the first quarter of 2023, according to sources familiar with Breaking ground on the matter, Reuters reported. The sources were not named because they were not authorized to speak on the topic, given that the details have not been made public.

This will be a major win for the US as it continues to compete with rival chipmakers in China and moves more chip manufacturing facilities to the US. SK Hynix, a subsidiary of SK Group, is South Korea’s second-largest semiconductor maker after Samsung.

The facility is estimated to cost billions of dollars and could be ready for mass production in 2025-2026, one source said. The plant will employ about 1,000 people and may be located near a university to access new engineering talent.

A representative for SK Hynix confirmed to Reuters that it plans to select a building site next year, but has not yet decided where to build it.

Earlier this week, President Joe Biden signed into law a bipartisan bill aimed at improving the nation’s competitiveness. With China at the forefront of chip manufacturing. The Chip and Science Act includes more than $52 billion in funding to advance research and manufacturing in the United States.

As in the South China Morning Post It was emphasized that passage of the law could help the United States create a so-called Chip 4 alliance between itself, South Korea, Taiwan and Japan to put additional pressure on China in the supply chain.

Notably, those receiving subsidies under the Chip Act are barred from expanding production in China beyond “traditional” 28nm products for 10 years. If Chinese factories can’t upgrade their manufacturing technology, they seem to lose their competitiveness.

SK Group said in July it would spend $22 billion on manufacturing, bioscience research and green energy in the US. Of the investment, $15 billion will go directly to semiconductor R&D and the creation of the aforementioned advanced packaging facilities.

Photo credit: Think Computers



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