South Korean company SK hynix, Inc., a supplier for Nvidia, will spend an estimated $3.87 billion on an Indiana chip packaging facility, the state’s largest economic development investment to date.

Governor Eric Holcomb, Secretary of Commerce David Rosenberg, Purdue University President Mung Chiang, and executives of SK hynix, a leading producer of High-Bandwidth Memory (HBM) chips, announced plans to establish a new advanced packaging fabrication and R&D facility for high-intensity and AI microelectronic products and applications.

The 430,000-square-foot facility will be located on 90 acres at the Purdue Research Park in West Lafayette. The facility will develop future generations of chips and house an advanced packaging R&D line. SK hynix’s multi-billion-dollar investment is the first of its kind in the U.S. and is expected to create 800 jobs.

“Indiana is a global leader in innovating and producing the products that will power our future economy, and today’s news is proof positive to that fact,” said Governor Holcomb.