SK Hynix to Construct $3.9 Billion Superior Packaging Facility in Indiana

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SK Hynix, the world’s main producer of high-bandwidth reminiscence (HBM) used to hurry the efficiency of AI chips, introduced it would make investments $3.9 billion close to Purdue College in Indiana to construct a complicated packaging facility. The corporate mentioned the challenge—the primary within the U.S.—will drive innovation within the nation’s AI provide chain.

SK Hynix’s new facility will embody a complicated manufacturing line for next-generation HBM—essential elements supporting GPUs that prepare AI programs like ChatGPT.

“We’re excited to change into the primary within the business to construct a state-of-the-art superior packaging facility for AI merchandise within the U.S. that can assist strengthen supply-chain resilience and develop a neighborhood semiconductor ecosystem,” SK Hynix CEO Kwak Noh-Jung mentioned in ready feedback. “With this new facility, we hope to advance our purpose of offering AI reminiscence chips with unmatched capabilities, serving the wants of our prospects.”

The corporate is working with Purdue, one of many main semiconductor faculties within the U.S., on plans for future R&D tasks, together with superior packaging and heterogeneous integration with Purdue’s Birck Nanotechnology Middle. The companions hope to work on a challenge associated to memory-centric options and structure for the generative AI period, particularly system-level reminiscence design and in/near-memory computing.

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The corporate made the announcement with officers from the U.S. authorities, the Indiana authorities and Purdue College in West Lafayette, Indiana.

The SK Hynix funding ought to entice extra semiconductor manufacturing to the realm, in line with Purdue electronics engineering professor Mark Lundstrom.

“When you get this began, it’s simply going to construct on itself,” Lundstrom informed EE Instances. “That’s what we’re on the lookout for. SK Hynix is constructing a analysis lab right here as effectively, they usually’ll be strongly engaged in analysis with us and concerned within the CHIPS Act R&D program. It isn’t solely manufacturing. That’s thrilling for the college and the grad college students.”

SK Hynix is a key provider of HBM to prime AI chip designer Nvidia.

“There are a whole lot of different chip corporations which are attempting to chase Nvidia now,” Lundstrom mentioned. “The marketplace for HBM goes to blow up.”

The corporate plans to start out manufacturing from the power within the second half of 2028, whereas growing future generations of chips. SK Hynix mentioned Indiana’s resilient manufacturing infrastructure, R&D ecosystem and powerful assist from Purdue College helped clinch the deal.

Innovation in reminiscence chips continues to drive lower-power operations and efficiency enhancements in computing. As chip scaling and different {hardware} enhancements have hit limits, SK Hynix mentioned its new chiplet-packaging know-how has emerged as a promising approach to proceed enhancing density and efficiency. As heterogeneous integration tech turns into extra essential to the semiconductor business, the challenge will assist set up the area as a brand new semiconductor cluster centered within the space that can change into a magnet for next-generation computing within the AI period, the corporate mentioned.

“In the present day’s announcement ought to ship a robust sign to different leaders within the semiconductor area,” U.S. Senator Todd Younger of Indiana informed EE Instances on the occasion. Younger, one of many key sponsors of the CHIPS Act, expects extra corporations to announce comparable tasks in his state.

“You heard it right here,” Younger mentioned. “I’m not ready to make any bulletins right here, however, it gained’t shock you that there have been some conversations. I’ll hold doing my half.”

You may watch our interview with Younger from the LinkedIn publish under:

Different corporations have additionally lately made investments in superior packaging in Indiana.

NHanced Semiconductors’ funding in hybrid bonding in southern Indiana will make the corporate one of many first within the U.S. to supply superior packaging companies, the corporate mentioned.

In South Korea, SK Hynix mentioned it has been working to organize a web site for the Yongin Semiconductor Cluster, the place it would make investments ₩120 trillion ($89 billion) to construct manufacturing services. The corporate didn’t disclose the timeframe for the funding. The corporate plans to interrupt floor on the primary fab in March of 2025, with plans for completion in early 2027. It should additionally construct a mini fab, a facility with tools for 300-mm wafer processing to check semiconductor supplies, elements and tools.

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