SK Hynix Poised to Boost U.S. Semiconductor Industry with Potential $15 Billion Investment in Indiana
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- SK Hynix Inc. is leaning towards Indiana over Arizona for a $15 billion advanced packaging facility, marking a significant U.S. investment aimed at enhancing the semiconductor supply chain.
- The company announced its plans in 2022 and intended to select a site by the first half of 2023, with Indiana currently favored but Arizona still under consideration.
- Despite a Financial Times report suggesting Indiana has been chosen, an SK Hynix spokesperson stated that no final decision has been made.
- The project is vital for U.S. efforts to improve advanced packaging capacity, addressing a bottleneck in revitalizing the domestic semiconductor industry. The U.S. holds only 3% of the global packaging capacity.
- The U.S. aims to reduce dependence on Asian semiconductor supply chains, with over $230 billion pledged for domestic investments in the sector since President Joe Biden's tenure began, largely influenced by the 2022 Chips Act.Texas, New York, and Arizona have been the primary beneficiaries of these investments, with Arizona attracting more than $60 billion.
- Indiana's semiconductor industry has seen over $2 billion in investments, significantly less in comparison.
- SK Hynix's potential choice of Indiana would bolster the state's position in the semiconductor industry and is seen as a win for Senator Todd Young, a key proponent of the Chips Act, highlighting Indiana's strategic advantages and political support.
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