It is reported that SK Hynix will build a new chip packaging factory in the United States early next year, costing billions of dollars

To help the U.S. compete with China, South Korean memory maker SK Hynix plans to build a state-of-the-art chip packaging factory in the U.S., two people familiar with the matter said, in 2023. Ground was broken around the first quarter.

One of the sources, who asked not to be named, said the plant is expected to cost "billions of dollars", employ about 1,000 people, and be ready for mass production in 2025-2026. And the source said the factory location could be near a university with engineering-related talent.

Last month, Hynix announced that it would invest $22 billion (about 148.28 billion yuan) in the United States in the fields of semiconductors, green energy and bioscience, of which $15 billion (about 101.1 billion yuan) will be invested in the semiconductor field. Specifically, the $15 billion will be used for research and development projects, materials research and development, and the construction of advanced packaging and test facilities.

SK hynix will establish a nationwide research and development cooperation network and related facilities to package SK hynix's own memory chips and logic chips designed by other U.S. companies for machine learning and artificial intelligence applications, the sources said.

In addition, the U.S. passed the Chip and Science Act this week, which would provide $52 billion in subsidies for chip manufacturing and research, as well as about $24 billion in tax breaks for chip factories. Chip packaging houses will be eligible for funding, the sources said.

SK Hynix officially acquired Key Foundry, a South Korean wafer foundry, on August 2 for a purchase price of 575.8 billion won (about 2.977 billion yuan). SK Hynix expects the acquisition to double its current 8-inch foundry capacity.