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A rendering of SK Hynix's semiconductor fabrication facility in Indiana. / Courtesy of SK Hynix

SK Hynix is accelerating efforts to establish its first artificial intelligence (AI) memory production base in the United States. The company is building up its production capabilities by securing essential infrastructure for factory construction, coordinating investments by partner companies and recruiting local workers. As it continues to post record earnings driven by high-bandwidth memory (HBM), SK Hynix aims to strengthen cooperation with major customers by establishing advanced packaging production capabilities in the United States.

According to industry sources on Oct. 26, SK Hynix recently secured additional construction permits for electricity and gas supply facilities at its HBM plant under construction in West Lafayette, Indiana. Semiconductor manufacturing facilities require a stable supply of electricity, industrial gases and other essential infrastructure before equipment can be installed, tested and put into full production. With construction procedures for critical infrastructure now progressing alongside those for the main factory buildings, development of the production site appears to be gaining momentum.

Efforts to establish local manufacturing infrastructure through partner companies are also continuing. A subsidiary of CK Solution, a company specializing in semiconductor facility equipment, reportedly secured a contract worth approximately 147.7 billion won last month for manufacturing-related construction work at the site. French industrial gas company Air Liquide also announced in July that it would invest more than $170 million in Indiana under a long-term supply agreement with SK Hynix. Air Liquide plans to build two production facilities to supply the plant with ultra-high-purity industrial gases, including nitrogen, oxygen, argon and hydrogen. The facilities are scheduled to begin operations by the end of 2028.

The company is also recruiting local workers. SK Hynix is hiring for positions needed to operate the plant, including construction management and human resources. It plans to directly employ approximately 1,000 people once commercial operations begin. By gradually securing local personnel, partners and infrastructure, the company appears to be preparing the operational systems necessary for the plant to begin production.

SK Hynix is accelerating construction of its U.S. production base to meet surging demand for AI semiconductors and strengthen business ties with major customers. The Indiana plant will serve as the company's first advanced HBM packaging production base in the United States. Semiconductor wafers manufactured in South Korea will be shipped to the facility for packaging and testing before being supplied to U.S. customers. Under this arrangement, wafer production will remain in South Korea, while downstream processes such as packaging and testing, along with research and development, will expand into the United States.

The U.S. production base is also significant for customer service and supply chain management. AI semiconductor companies, including Nvidia, and major cloud service providers are expanding investments in AI infrastructure, particularly in the United States. Establishing local packaging and testing capabilities could therefore strengthen SK Hynix's technological cooperation with customers and its ability to meet their supply needs. The United States is also seeking to expand domestic advanced packaging capacity to improve the stability of its AI semiconductor supply chain. The U.S. Department of Commerce has agreed to provide SK Hynix with up to $458 million in direct subsidies for its Indiana project.

The investment exceeds $4 billion. SK Hynix plans to complete its cleanroom by October 2028 and begin mass production of next-generation HBM in the second half of 2029. The company intends to establish both production facilities and advanced packaging research and development capabilities in Indiana, creating a global supply system linked to its manufacturing operations in South Korea.

The construction of the U.S. production base also comes amid strong earnings growth. SK Hynix has been setting new quarterly earnings records, supported by rising demand for AI memory, particularly HBM, and higher prices for conventional memory products. According to financial data provider FnGuide, market consensus estimates for SK Hynix's third-quarter earnings stand at 98.2257 trillion won in revenue and 76.964 trillion won in operating profit. These figures are market forecasts, not finalized results announced by the company. SK Hynix is scheduled to release its third-quarter earnings on Oct. 28.

As expanding investment in AI data centers drives demand for HBM, rising prices for conventional DRAM and NAND flash memory are also raising expectations of improved performance across the broader memory business. However, because the Indiana plant is scheduled to begin mass production in the second half of 2029, the project is focused on expanding long-term supply capacity and strengthening customer support rather than contributing to immediate earnings.

Regarding the Indiana plant, an SK Hynix official said, "The project is proceeding according to the required procedures, and mass production will begin as planned."

                                                                                                               Choi In-gyu