Nvidia supplier SK Hynix plans to invest $3.87 billion in U.S. chip facility
SK Hynix logo displayed on a phone screen as seen in this illustration photo taken in Krakow, Poland on January 30, 2023.

SK Hynix , one of the world's largest memory chipmakers, said it would invest $3.87 billion in its first chip packaging facility in the U.S., marking another victory for the Biden administration's efforts to onshore chip production.

The South Korean firm announced the West Lafayette, Indiana-based project at an event at Purdue University on Wednesday, with officials from Indiana State and the U.S. government in attendance.

SK Hynix said the facility, slated for operation in 2028, will house a production line for SK Hynix's cutting-edge high-bandwidth memory chips — important components in the Nvidia GPUs used to train AI systems like ChatGPT.

"We are excited to become the first in the industry to build a state-of-the-art advanced packaging facility for AI products in the United States," said SK Hynix CEO Kwak Noh-Jung in a statement, adding it would "strengthen supply-chain resilience and develop a local semiconductor ecosystem."

The project will also bring more than a thousand new jobs to the region and will include an R&D facility to develop future generations of chips, according to the company.