South Korean chipmaker SK Hynix said Thursday it will begin volume production of next-generation HBM4E chips at its Indiana facility in the third quarter of 2029, as CEO Kwak Noh-Jung warned the current memory shortage will persist through 2030.
Billion-Dollar Bet on U.S. AI Supply Chain
The more than $4 billion project will expand SK Hynix's presence in the United States as growing AI investment drives demand for high-bandwidth memory.
The site at Purdue Research Park will allow the company to produce chips closer to major customers such as Nvidia , Microsoft , and Alphabet .
Don't Miss:
A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why
Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast
Jung said, "The United States is the epicenter of AI innovation, bringing together premier customers, top-tier R&D capabilities, and partners, and the Indiana fab will become a gateway to deliver first Made in USA HBM products."
Dominant Market Position Reinforces Bullish Outlook
According to Counterpoint Research, SK Hynix held 58% of the global HBM market by revenue in the first quarter of 2026, outpacing Samsung Electronics and Micron Technology , each at 21%.
Nvidia, a major SK Hynix customer, forecast a 70% jump in revenue for the next fiscal year, reinforcing confidence in sustained AI-chip demand and supporting Kwak's view that the memory upcycle has room to run.
The U.S. government supported the project with $458 million in CHIPS Act grants and up to $500 million in loans, with the funding finalized in December 2024.
Trending: Avoid the #1 Investing Mistake: How Your 'Safe' Holdings Could Be Costing You Big Time
Trading Metrics
SK Hynix has a market capitalization of approximately $912.37 billion. Its stock has traded between a 52-week high of $194.45 and a 52-week low of $124.80.
Over the past month, the large-cap stock gained 24.15%.
Needham analyst N. Quinn Bolton raised his price target on SK Hynix to $220 from $200 on Monday, maintaining a Buy rating.