In order to relocate some of the world’s semiconductor production, the United States has set up the CHIPS and Science Act. The CHIPS and Science Act is a plan to invest in the semiconductor industry, with the aim of attracting foundries to the United States. This time, it’s SK Hynix that’s answering the call by getting showered with public money!
$450 million for SK Hynix to set up in Indiana!
We’ve just learned that the memory specialist has signed a preliminary agreement with the US Department of Commerce. Under the terms of this agreement, the company will benefit from a $450 million grant and access to a $500 million loan under the Chips and Science Act.
The aim of all this is for the company to open a chip production and assembly site in Indiana, USA. This is all part of the company’s $3.87 billion investment plan to open new plants. It should be noted, however, that this opening will generate employment in America through the creation of 1,000 jobs.
On a broader level, one of the reasons why the USA is so keen to attract semiconductor companies is to reduce its dependence on Asian countries, such as Taiwan. In the event of conflict with China (the situation is tense between the two), this would prevent Uncle Sam from finding himself without a supply of CPU/GPU/memory chips.
Meanwhile, in Europe, the ship is taking on water…