IFTLE 584: SK hynix HBM Is Coming to the US; Intel Pushes Back Ohio Chip Fab

Onshoring SK hynix HBM

Multiple reports indicate that SK Hynix is poised to announce its first major U.S. investment: A $15B+ advanced packaging facility. SK hynix is reportedly picking Indiana as its geographic site, but has Arizona available as a second choice, according to those close to the negotiations.

While an SK hynix spokesperson said that no final decision has been made, the Financial Times reported that the firm selected Indiana.

Figure 1: Nvidia’s AI chip with SK hynix HBM.

SK hynix is a key memory chip supplier to Nvidia, for its AI semiconductor segment.

The new packaging plant in Indiana will reportedly be focused on stacked DRAM high bandwidth memory (HBM), used for AI, according to the Financial Times. Hynix has been shipping HBM3 to Nvidia during the past year, and hopefully, that will be produced in the Indiana plant.

Currently, TSMC is Nvidia’s AI chip supplier, which sources HBM from SK hynix. TSMC is bringing up two advanced packaging plants in Arizona which, once completed, will be sourcing the HBM from its new plant in Indiana.

Nvidia will also reportedly be using Intel’s plants for its GPU’s packaging production. The deal is allegedly made for 5,000 wafers per month. As of now, 90% of its production is handled by TSMC, which has also been working on HBM4 integration.

Global semiconductor firms have announced more than $230B in onshore investment since the 2022 Chips Act. Most of that investment has gone to Texas, New York, and Arizona. For instance, more than $60B in investments from TSMC Intel, Amkor, and others.

Intel Pushes Back Timeline for Ohio Semiconductor Facility

Intel has postponed the completion date of its planned Ohio IC manufacturing site to late 2026, blaming “..weakness in the semiconductor market and delays in receiving CHIPS Act subsidy cash”.

The Intel 2025 goal was announced back in 2022 when Intel first announced plans to build the semiconductor facility outside Columbus Ohio. The current construction status of the fab is shown in Figure 1.

Intel site in Ohio. — Figure 1: Intel’s Ohio One semiconductor-manufacturing facility is seen in January. The facility has been under construction since 2022. (Photo Credit: INTEL)

Intel said the new timeline will depend on “…funding from the CHIPS Act and other business conditions”. In its annual report, Intel stated that it expects to receive substantial grants from the U.S. government under the CHIPS Act and that the timing of funding could affect its capital investment plans. The annual report listed an advanced manufacturing investment tax credit of $845 million from the CHIPS Act for 2023 and $723 million in state grants in 2023 for its Ohio projects.

Aside from Ohio, Intel is expanding in Arizona, New Mexico, and Oregon. Outside the U.S., a $33 billion fabrication site is planned for Germany and a$4.6 billion test facility is slated for Poland.

IMAPS Onshoring Workshop

IMAPS’ “Onshoring 2024” is scheduled for April 29 – May 1^st. Attendance will be for US citizens only. The program is in its final stages of completion and will include updates on nearly all of the major Govt programs in place to bring advanced packaging capability back onto the US mainland.