SK hynix this week announced plans to build its advanced memory packaging facility in West Lafayette, Indiana. The move can be considered as a milestone both for the memory maker and the U.S., as this is the first advanced memory packaging facility in the country and the company’s first significant manufacturing operation in America. The facility will be used to build next-generation types of high-bandwidth memory (HBM) stacks when it begins operations in 2028. Also, SK hynix agreed to work on R&D projects with Purdue University.

The facility will handle assembly of HBM known good stacked dies (KGSDs), which consist of multiple memory devices stacked on a base die. Furthermore, it will be used to develop next-generations of HBM and will therefore house a packaging R&D line. However, the plant will not make DRAM dies themselves, and will likely source them from SK hynix’s fabs in South Korea. The plant will require SK hynix to invest $3.87 billion, which will make it one of the most advanced semiconductor packaging facilities in the world. Meanwhile, SK hynix held the investment agreement ceremony with representatives from Indiana State, Purdue University, and the U.S. government, which indicates parties financially involved in the project, but this week’s event did not disclose whether SK hynix will receive any money from the U.S. government under the CHIPS Act or other funding initiatives.