South Korean semiconductor company SK hynix Inc. has announced that it is poised to receive up to $450 million in grants from the US government for its investment in establishing a production base for advanced semiconductor packaging in Indiana. This initiative is part of the company's $3.87 billion plan to build a memory packaging plant for AI products and an advanced packaging R&D facility in West Lafayette, USA, aimed at producing next-generation memory chips. The company has signed a nonbinding preliminary memorandum of terms with the US Department of Commerce to receive proposed federal incentives under the CHIPS and Science Act for the establishment of a high-bandwidth memory (HBM) advanced packaging fabrication and R&D facility. Additionally, the project is expected to qualify for a tax benefit equivalent to up to 25 percent of its capital expenditures, and the US government plans to make $500 million in government loans available for the project. SK hynix CEO Kwak Noh-jung expressed excitement about establishing a new hub for AI technology, creating skilled jobs in Indiana, and contributing to a more resilient supply chain for the global semiconductor industry. The company is collaborating with US institutions to supply cutting-edge AI memory products and is moving forward with the construction. US Secretary of Commerce Gina Raimondo highlighted that the envisioned construction will generate approximately 1,000 new jobs and address a critical gap in the US semiconductor supply chain, emphasizing the importance of advanced packaging for AI and other leading-edge systems. The secretary also noted that SK hynix's incentive will significantly contribute to the complex computing systems vital to the nation, as the company aims to expand its lead in the supply of HBM chips to Nvidia and packaging is considered a key area in the Sino-US technological rivalry.