SK Hynix this week announced plans to build its advanced memory packaging factory in West Lafayette, Indiana. The move is a milestone for both the memory maker and the United States, as it is the country’s first advanced memory packaging factory and the company’s first major U.S. manufacturing facility. The facility, which will begin operations in 2028, will be used to build next-generation types of high-bandwidth memory (HBM) stacks. Additionally, SK Hynix has agreed to collaborate on research and development projects with Purdue University.
“We are pleased to be the first company in the industry to build a state-of-the-art advanced packaging facility for artificial intelligence products in the United States, which will help enhance supply chain resiliency and develop the local semiconductor ecosystem,” said SK Hynix. Chief. Executive Officer Guo Luzheng.
One of the most advanced chip packaging facilities ever built
The facility will handle the assembly of HBM’s Known Good Stacked Dies (KGSD), which consist of multiple memory devices stacked on a base die. In addition, it will be used to develop the next generation HBM and will therefore have a packaging R&D line. However, the factory will not produce its own DRAM chips, but may purchase them from SK Hynix’s wafer fab in South Korea.
The factory will require an investment of US$3.87 billion from SK Hynix, which will make it one of the most advanced semiconductor packaging facilities in the world. Meanwhile, SK hynix held an investment agreement ceremony with representatives from Indiana State University, Purdue University and the U.S. government, indicating that all parties are involved in the project, but this week’s event did not reveal whether SK hynix would The U.S. Government receives no funds under the CHIPS Act or other funding programs.
The cost of the facility significantly exceeds the packaging facilities built by other major players in the industry such as ASE, Intel and TSMC, highlighting what an important investment this is for SK hnix. In fact, according to Yole Intelligence estimates, the 2023 advanced packaging capital expenditure budget is $3.87 billion higher than Intel, TSMC and Samsung.
Given that the fab will come online in 2028, based on SK Hynix’s product roadmap, we expect it will be used at least partially to assemble the HBM4 and HBM4E stacks. It is worth noting that since the HBM4 and HBM4E stacks are set to 2048-bit interfaces, their packaging process will be much more complex than the existing 1024-bit HBM3/HBM3E packaging and will require the use of more advanced tools, which is why it is prepared More expensive than some existing advanced packaging facilities. Because of the extreme complexity of the 2048-bit interface, many chip designers planning to use HBM4/HBM4E are expected to use hybrid bonding to integrate it directly onto the processor, rather than using a silicon interposer. Unfortunately, it is unclear whether the SK hynix factory is able to provide such services.
HBM is primarily used in AI and HPC applications, so production in the United States is strategically important. Meanwhile, the actual memory chips still need to be produced elsewhere in dedicated DRAM factories.
Purdue University Partnership
In addition to support provided by state and local governments, SK hynix has chosen to build a new facility in West Lafayette, Indiana, to collaborate with Purdue University and the Purdue Birck Nanotechnology Center on research and development projects, including advanced packaging and heterogeneous integrated.
SK Hynix intends to collaborate with Purdue University and Ivy Tech Community College to create training programs and multidisciplinary degree programs aimed at cultivating a technically skilled workforce and establishing a stable stream of emerging talent for its advanced memory packaging facilities and R&D operations .
“SK Hynix is a global pioneer and market leader in artificial intelligence memory chips,” said Purdue University President Mung Jiang. “This transformational investment exemplifies our country and university’s commitment to semiconductors, hardware AI, and hard technology corridors. “This is also a milestone moment in completing our country’s digital economy supply chain through advanced packaging of chips. Located in the Purdue University Research Park, the largest facility of its kind at an American university will continue to grow and succeed through innovation.”