SK hynix Inc. announced it has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to $450 million in proposed direct funding and access to proposed loans of $500 million as part of the CHIPS and Science Act for its investment to build a production base for semiconductor packaging in Indiana.
Separately, SK hynix plans to seek from the U.S. Department of the Treasury a tax benefit equivalent of up to 25% of the qualified capital expenditures through the Investment Tax Credit program.
The company also said that it will proceed with the construction of the Indiana production base as planned to meet the plan to provide AI memory products.
The signing follows SK hynix’s announcement in April that it plans to invest $3.87 billion to build a production base for advanced packaging in Indiana in a move expected to create around 1,000 jobs.
The company also said that it would collaborate with local research institutions, including Purdue University for research and development of semiconductors.
