SK Hynix will receive $685.8 million in incentives from the state of Indiana, United States, for establishing a semiconductor manufacturing facility there.
SK Hynix disclosed its plans on Apr. 4 to construct a high-bandwidth memory (HBM) production site in West Lafayette, Indiana, with an investment of $3.87 billion (5.2 trillion won). In addition to this investment, the state of Indiana will provide the company with grants and tax credits totaling $685.8 million (920 billion won). These state incentives are distinct from the grants available under the U.S. federal government’s Chips and Science Act, which aims to bolster domestic semiconductor research and production. SK Hynix is also applying for a grant under the Chips Act, which could lead to the company receiving additional incentives amounting to several trillion won.
The incentives package from Indiana includes $3 million for training, $3 million for manufacturing readiness, $45 million for infrastructure improvements, and up to $80 million in conditional performance-based incentives.
In a broader context, states across the U.S. offer subsidies and tax benefits to attract semiconductor industry leaders. For instance, Samsung Electronics, which is setting up a semiconductor foundry in Taylor, Texas, will benefit from a $4.8 billion (6.47 trillion won) property tax abatement. Meanwhile, TSMC of Taiwan has secured $250 million in incentives from the state of Arizona, along with a guaranteed water supply.
