The chip packaging facility will reportedly package the memory chips of SK hynix with logic chips designed by other American companies for artificial intelligence and machine learning applications

Global-CSR-Activities_SK-hynix-Wuxi-Subsidiary-2

SK hynix is part of South Korean conglomerate SK Group. (Credit: SK HYNIX INC.)

SK hynix plans to begin construction on a new chip packaging plant in the US during the first quarter of 2023, reported Reuters, citing two undisclosed sources having knowledge of the matter.

The South Korean semiconductor company will aim to pick a site that is near a university having engineering talent, said one of the sources.

Likely to involve an investment in “several billions,” the chip packaging plant of SK hynix will target 2025-2026 to achieve mass production. It is expected to recruit nearly 1,000 people, as per one of the sources.

One of the sources has been quoted by the news agency, as saying: “R&D investments will include building out a nationwide network of R&D partnerships and facilities.”

The source further said that the chip packaging facility will package the memory chips of SK hynix with logic chips designed by other American companies for artificial intelligence and machine learning applications.

In response to the report by the publication, SK hynix confirmed that it intends to choose a site for the proposed facility in the first half of 2023. However, it said that a decision on when to start the construction has not been made.

The company is part of South Korean conglomerate SK Group, which, last month announced an investment of $22bn in the US.

SK Group, at that time, said that a considerable part of the announced investment, that is $15bn will be used for supporting research and development (R&D) partnerships and the construction of an advanced packaging and testing facility for semiconductors.

The investment in the US will be across semiconductors, bioscience, and clean energy. It is expected to be part of the larger KRW247 trillion won ($195.24bn) investment that SK Group announced in May 2022, which will be invested over the next five years in semiconductors, biopharmaceuticals, and batteries.