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Proposed federal incentives announced for South Korean tech company's West Lafayette plant

By Timoria Cunningham

Posted August 6, 2024

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Mung Chiang speaks at a podium flanked by business and government officials. Chiang is Chinese-American and wears a suit with a gold tie. Behind him is a backdrop that reads 'Celebrating Partnerships.'

Purdue President Mung Chiang speaks at the April 3, 2024, announcement of SK hynix’s plans to build an advanced semiconductor plant in the Purdue Research Park in West Lafayette. (Kelsey Lefever/Purdue University)

The U.S. Department of Commerce announced nearly half a billion dollars worth of proposed federal incentives Tuesday as a part of a non-binding agreement with SK hynix. The South Korean tech company is planning a multi-billion dollar advanced semiconductor plant in West Lafayette.

The proposal will further build on SK hynix’s initial investment of more than $3.8 billion to build a memory packaging plant at the Purdue Research Park.

Brock Herr is the senior vice president of business development for the Indiana Economic Development Corporation. Herr said semiconductor manufacturing in Indiana is already very strong and this investment will better position the state in the future.

“This fits into Indiana's DNA as an advanced manufacturing state and as the state along with the rest of the country, transitions into these 21st century technologies that are going to be lasting for decades to come,” Herr said.

The advanced manufacturing plant is expected to create as many as 1,000 jobs. Herr said these jobs will be highly skilled and provide “high” wages. There will be a variety of jobs created including welders, pipefitters, machine operators and researchers.

Timoria is our labor and employment reporter. Contact her at tcunningham@wfyi.org.