SK Hynix announces plans to begin mass production of next-generation HBM4E memory chips in Indiana by 2029, signalling sustained demand for AI technology and a prolonged memory chip shortage until 2030.
SK Hynix has said it expects to start volume production of its next-generation HBM4E chips at its Indiana plant in the third quarter of 2029, underlining how long it believes demand for advanced memory will remain elevated. Chief executive Kwak Noh-Jung also warned that the current shortage in memory chips is likely to last through 2030, a sign that the company sees little immediate relief in a market being reshaped by artificial intelligence spending.
The $4 billion project, located at Purdue Research Park in West Lafayette, marks a major step in SK Hynix’s push to deepen its US manufacturing footprint. The company says the site will bring production closer to key customers including Nvidia, Microsoft and Alphabet, while also supporting packaging, testing and research work tied to high-bandwidth memory, or HBM, the specialised component used in AI servers and accelerator chips.
Industry data suggests SK Hynix enters the expansion from a position of strength. Counterpoint Research said the company held 58% of the global HBM market by revenue in the first quarter of 2026, ahead of Samsung Electronics and Micron Technology, which each had 21%. That dominance comes as Nvidia, one of its biggest customers, has forecast a 70% increase in revenue for the next fiscal year, reinforcing expectations that demand for AI infrastructure will remain robust.
The Indiana investment has also drawn support from Washington. According to the company and reporting on the project, the US government approved $458 million in CHIPS Act grants and up to $500 million in loans, with the financing finalised in December 2024. Tom’s Hardware reported that the facility is expected to employ about 1,000 people and could eventually support wider collaboration with Purdue University on future packaging technologies, giving the site a broader role in the domestic AI supply chain.
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