Asia Tech Wire (Aug 7) -- South Korean chipmaker SK hynix will receive nearly $1 billion in U.S. funding.

SK hynix announced Tuesday that the company and the U.S. Department of Commerce have signed a non-binding preliminary memorandum.

The memorandum shows that SK hynix will receive up to $450 million in direct grants and up to $500 million in loans based on the CHIPS and Science Act for its investment in an advanced semiconductor packaging plant in the U.S. state of Indiana.

SK hynix also plans to apply for investment tax credits equal to 25% of qualified capital expenditures.

In April, SK hynix announced that it would invest $3.87 billion in West Lafayette, Indiana, to build an advanced packaging fabrication and R&D facility for AI products, while collaborating with local research institutions such as Purdue University on semiconductor research and development.

The site will have a next-generation HBM memory packaging line and is due to begin mass production in the second half of 2028.