SK hynix will receive $458 million in subsidies for the construction of a chip factory in the USA

The bulk of the funds provided by the 2022 Chips Act to support the development of the US semiconductor industry have already been distributed, but the Biden administration continues to sign specialized contracts with companies that applied for subsidies. SK hynix should receive $458 million to build a chip testing and packaging facility in the United States.

Image Source: SK Hynix

This enterprise will be built in Indiana, the South Korean company SK hynix announced this back in April of this year. It is planned to spend $3.87 billion on the project; part of the capacity will be allocated for testing and packaging of advanced HBM chips, which are required for the local production of computing accelerators. The importance of this type of component for ensuring the sovereignty and security of the United States, apparently, ensured the allocation of $485 million in subsidies for the implementation of the SK hynix project.

The Korean manufacturer, now the world’s leading HBM supplier, can also qualify for $500 million in soft loans. Funds will be released in stages as the project reaches certain implementation milestones. The Indiana facility is expected to employ 1,000 people. Tellingly, rival Samsung Electronics has still not received guarantees for the allocation of the $6.4 billion that the country’s authorities initially promised to provide it for the construction of new enterprises in the state of Texas. All other major applicants, including TSMC, Intel and Micron, have already received their guarantees from the US authorities in this area.

A division of the Korean holding SK Group, which includes SK hynix, called Absolics, this month also received guarantees from the US authorities for the provision of $75 million in subsidies for the construction of a plant in the state of Georgia to produce materials in demand in the modern semiconductor industry.