The United States has finalized a deal to give South Korean chipmaker SK Hynix up to $458 million in grants and $500 million in loans to build an advanced chip packaging facility in Indiana. The combined grant and loan subsidy package amounts to $958 million.
The U.S. Department of Commerce has cemented a final subsidy contract with SK Hynix, according to Bloomberg on Dec. 19. The Biden administration has announced subsidies for chipmakers building production facilities in the U.S. under the CHIPS and Science Act. The final contract is $8 million more than the $450 million outlined in the preliminary deal signed in August.
SK Hynix plans to invest $3.87 billion to build a chip packaging facility in Indiana, which will reportedly include assembly lines for next-generation artificial intelligence (AI) chips such as high-bandwidth memory (HBM). “We look forward to working with our U.S. partners, including the federal government and the state of Indiana, to help revive the AI semiconductor supply chain,” the company said.
The Biden administration is trying to “ink as many deals as possible before leaving office in January,” Bloomberg reported. The Commerce Department has so far finalized subsidies for Intel ($7.865 billion), TSMC ($6.6 billion), and Micron ($6.165 billion).
With the latest deal for SK Hynix, Samsung Electronics remains the only major chipmaker that has yet to complete a deal. Samsung, which plans to invest $44 billion in Taylor, Texas, has signed a preliminary deal to receive $6.4 billion in subsidies from the U.S. government and is reportedly in the final stages of negotiations.
