South Korea’s SK Hynix, a key supplier for tech giant NVIDIA (NASDAQ:NVDA), plans to set up an advanced chip-packaging plant worth $3.9 billion in West Lafayette, Indiana. The major investment comes as Midwestern U.S. states look to attract players in the fast-growing semiconductor industry.
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Jobs, Grants, and Incentives
The plant is expected to create over 1,000 new jobs in the region. According to the Wall Street Journal, the facility will begin mass production in H2 2028. SK Hynix is a leading name in high-bandwidth memory (HBM) solutions. It is also the exclusive HBM partner for NVDA’s advanced GPUs. Notably, the supplier is receiving nearly $615 million in tax rebates, grants, and incentives from Indiana authorities and the Purdue Research Foundation.
Eye on Expanding Chip-Making Prowess
The development also highlights chipmakers’ growing appetite for establishing a presence in the U.S. The Biden administration has been aiming to bolster the country’s chip-making prowess and protect its technological know-how. This effort has included billions of dollars in incentives under the 2022 Chips Act.
Intel (NASDAQ:INTC) is setting up two new facilities in Ohio, with an investment of over $28 billion. Additionally, Taiwan Semiconductor (NYSE:TSM) is pouring nearly $40 billion into a chip-making facility in Arizona.
What Is the Target Price for NVDA?
Meanwhile, bulls remain firmly in charge of NVIDIA shares. The stock has rallied by nearly 225% over the past year. Overall, the consensus rating for NVIDIA remains a Strong Buy, alongside an average NVDA price target of $983.84.
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