Young, other lawmakers from Indiana urge U.S. to give SK Hynix funding from CHIPS act

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By Cate Charron

Indiana Business Journal

The U.S. senator who co-authored the federal $280 billion CHIPS and Science Act is urging the Department of Commerce to send a slice of that funding to a project planned in his home state.

U.S. Sen. Todd Young of Indiana and 10 other congressional members from Indiana signed a public letter of support addressed to U.S. Secretary of Commerce Gina Raimondo for chip manufacturer SK Hynix Inc.’s application for federal dollars, saying the company’s plans for the state will accelerate the country’s position in the international microelectronics innovation race.

SK Hynix is planning to build a $3.87 billion semiconductor packaging facility at the Purdue Research Park in West Lafayette, with a 430,000-square-foot building spanning 90 acres. Total employment at the site is expected to reach more than 1,000 by 2030, with the facility expected to open in the second half of 2028.

“SK Hynix’s investment will help the U.S. to reestablish its leadership in semiconductor technology and represents a significant step in developing a robust, U.S.-based semiconductor ecosystem,” the letter read.

The South Korean chip manufacturer has agreed to a $700 million incentive agreement with the Indiana Economic Development Corp. and is seeking additional funding through the U.S. Department of Commerce’s CHIPS Incentives Program. CHIPS stands for Creating Helpful Incentives to Produce Semiconductors and Science.

The bipartisan letter was signed by Sen. Mike Braun and Reps. Jim Baird, Frank Mrvan, Rudy Yakym, Jim Banks, Victoria Spartz, Greg Pence, André Carson, Larry Bucshon and Erin Houchin.

According to the CHIPS program, federal subsidies from the program have so far attracted $300 billion in committed investments from private industry.