SK Hynix projects that the artificial intelligence (AI)-driven memory semiconductor boom will continue through 2030. The South Korean chipmaker also left the door open for additional investment in the United States, anchored by the high-bandwidth memory (HBM) packaging plant under construction in Indiana. At a press conference following the groundbreaking ceremony for the Indiana fab in West Lafayette on the 27th (local time), SK Hynix CEO Kwak Noh-jung said, “We see no clear signals foreshadowing a downturn,” adding, “We expect the current conditions to persist through the end of 2030.”
Kwak assessed that a recurrence of the memory market’s past sharp downturns is unlikely. “When we went through multiple downturns in the past, the memory business was essentially 100% commodity products, and manufacturers competed by increasing output in the same market,” he said. “But with HBM, both customers and semiconductor manufacturers participate in chip development and must collaborate to maximize performance, which makes market demand much easier to predict.”
The assessment is that AI is fundamentally transforming the memory industry’s structure. As the business model shifts from commodity products to customer-tailored offerings, demand predictability has improved—meaning that even if a downturn arrives, demand is more likely to slow or plateau rather than collapse abruptly.
On additional U.S. investment, Kwak made clear the company is open to any region if conditions are right. “We are open to anywhere, but nothing has been decided yet,” he said. “If a location offers good conditions—power, water, subsidies—and the ability to create new business opportunities with customers, we are open to it.” He maintained the same stance regarding the possibility of front-end process facility investment that the U.S. government has been seeking, while drawing a line that no specific projects have been confirmed.
Indiana Fab to Begin HBM4E Mass Production in Q3 2029
SK Hynix unveiled concrete production plans for the Indiana plant for the first time at the groundbreaking ceremony. Mass production of HBM4E (7th-generation HBM) will begin in the third quarter of 2029, with annual production capacity expected to reach hundreds of thousands of wafers. Foundation work is already underway, with construction of major facilities set to begin in October. The plan calls for cleanroom completion by October 2028 and the start of mass production in the second half of 2029.
The Indiana fab is an advanced packaging production base for HBM. It will establish an “integrated Korea-U.S. HBM production system” in which HBM wafers produced in Yongin and Icheon, South Korea, are brought to the U.S. for advanced packaging and testing before being supplied to local customers. “A fully integrated production system connecting Korea and the United States will operate here,” Kwak emphasized.
SK Hynix is investing more than $4 billion (approximately 5.5 trillion won) in the Indiana project—a slight increase from the $3.87 billion (approximately 5.3 trillion won) announced when the investment was first disclosed in 2024. Kwak described the change in investment amount as “negligible,” explaining that “the difference from when the final figure was set is that demand from the market has become much stronger.”
Local supply chain development is proceeding in parallel. SK Hynix is in discussions with more than 100 partner companies in materials, components, and equipment to build a local supply chain. The fab’s construction, operation, and related industries are expected to create more than 7,000 jobs.
U.S. Officials Hail Project as “Core to Rebuilding the Semiconductor Industry”
U.S. officials framed SK Hynix’s investment as a pivotal moment for rebuilding the domestic semiconductor industry. Indiana Governor Mike Braun said, “This project will open the next generation of American innovation, bring thousands of quality jobs to Indiana, and accelerate regional economic development.”
U.S. Senator Todd Young of Indiana directly linked the investment to the CHIPS and Science Act. Young, considered a key Republican architect of the legislation, said, “SK Hynix’s historic West Lafayette investment is further proof that Indiana is leading the rebuilding of America’s semiconductor industry,” adding that it “will create quality jobs, strengthen national and economic security, and ensure future technologies are developed and produced in the United States.”
Young expressed expectations that SK Hynix’s Indiana investment will grow further. “SK Hynix will increase its Indiana investment,” he said, emphasizing that “the initial $4 billion should be remembered as just the beginning.” He added that he also anticipates additional investments beyond SK Hynix at the SK Group level, including biotech and shipbuilding. “Every time I speak with SK Group Chairman Chey, I make it clear: we are ready to receive investment,” Young said.
Kang Kyung-wha, South Korea’s Ambassador to the United States, assessed the investment as a project that goes beyond simple production facility construction. “SK Hynix’s Indiana investment is not merely an investment in semiconductor manufacturing facilities, but the establishment of America’s first AI memory production facility and R&D center,” she said. “It is a unique model that strengthens semiconductor talent development and cooperation with government and external institutions.”
Yu Jung-joon, Vice Chairman of SK Group’s Americas operations, expressed the group’s commitment to expanding its U.S. presence. Citing SK’s semiconductor, energy, and advanced technology businesses in the U.S., he indicated that the group’s U.S. investment and asset base will exceed $45 billion (approximately 61.9 trillion won) by 2030. Yu described the Indiana project as “more than a new facility,” stressing that “this is only the beginning.”
Cautious Approach on Kioxia and Solidigm
Kwak struck a cautious tone regarding convertible bonds (CBs) issued by Kioxia, the Japanese NAND flash memory producer. If SK Hynix converts its current CB holdings into equity, it would become Kioxia’s largest shareholder. “There are no specific or confirmed plans regarding the Kioxia stake,” he said. “We are very carefully reviewing how to develop the NAND flash business and open up the market.”
On the potential initial public offering (IPO) of NAND flash subsidiary Solidigm, Kwak was tight-lipped: “It is still in the discussion stage, and we have not decided to withdraw.”
SK Hynix also plans to expand investment in the U.S. AI ecosystem. Kwak described the AI-related entity established in the U.S. this year as “a kind of investment vehicle for investing in important startups and companies to prepare for future business.” Investment targets include AI startups and technology companies that can create synergies with SK Hynix’s memory business.
On the choice of Indiana as the company’s first U.S. production base, Kwak cited land, power, water, talent, and government support. “When we selected the site about three years ago, we considered all factors,” he said. “The evaluation showed Indiana was far superior to other candidate regions.” On securing local talent, he projected that “within a few years we can secure sufficient personnel” through collaboration with regional educational institutions including Purdue University.