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U.S. Department of Commerce awards CHIPS Incentives to SK hynix to expand capacity of chips crucial to AI supply chain

Published Date
Jan 6 2025
A&O Shearman advised the U.S. Department of Commerce (DOC) on its award of up to USD458 million in direct funding and up to USD500m in loans to a U.S. subsidiary of SK hynix under the CHIPS Act.

This funding supports SK hynix’s investment of approximately USD3.87 billion to build a memory packaging plant for artificial intelligence products and an advanced packaging fabrication and R&D facility in West Lafayette, Indiana.

This project aims to address a crucial gap in the U.S. semiconductor supply chain and is anticipated to generate around 1,000 new facility jobs.

The team that advised the DOC was led by energy, natural resources and infrastructure (ENRI) partner Jean Lee, with support from ENRI associates Sara Douki, Moises Mizrachi, Niso Matari, Rebecca Dresner, Zeina Traboulsi, Punarva Gera and Nathan Bodger, and environment and sanctions counsel Kuang Chiang.

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