SK hynix Plans to Make a Surprise Move Into U.S. Advanced Packaging : US Pioneer Global VC DIFCHQ SFO NYC Singapore – Riyadh Swiss Our Mind

Aiming to Capitalize on the Region’s Urgent Need For It

SK hynix, the renowned memory manufacturer, plans to take advanced packaging into its own hands, as the firm is reportedly looking to set up a 2.5D packaging facility in the US.

SK Hynix Moves To Build 2.5D Packaging Lines in the US, Competing With TSMC in the Region

Lack of advanced packaging lines is currently a significant concern for the resilience of the US supply chain, primarily because technology has evolved into an integral part of the computing world. Despite massive investments by companies like TSMC, there is no advanced packaging fab in the US that provides mainstream solutions like the CoWoS. However, it is reported (via ZDNet Korea) that SK hynix intends to capitalize on this shortfall by establishing a 2.5D packaging plant in Indiana, which is designed to scale up the company’s HBM production in the region. SK hynix won’t be operating these facilities independently, and we do expect some joint venture.

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HBM modules are in high demand right now, and 2.5D packaging is an integral element for SK hynix, as it allows HBM to be stacked with a processor on a silicon interposer. TSMC’s CoWoS technology has been widely used with SK hynix’s HBM modules in the past; however, not only does the firm face supply constraints with 2.5D packaging, but for its facilities in the US, accessing advanced packaging domestically isn’t currently possible. Hence, the Korean giant plans to build new lines in the US to ensure that it can cater to the demand coming from NVIDIA and other customers.

A TSMC graphic describing its CoWoS packaging technology. Image: TSMC

SK hynix lacks the necessary resources to independently operate advanced packaging facilities, which is why the Korean giant is seeking to agree with packaging partners. While the report doesn’t mention any names, we do know that Amkor has been helping companies like TSMC set up packaging facilities in the US, so that could be an option. Another option could be Intel Foundry, which features its EMIB packaging technology, as an alternative to TSMC’s CoWoS. However, it is currently uncertain how SK hynix plans to collaborate with its partners.

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