Seoul, Dec 19 (NationPress) The U.S. Commerce Department declared on Thursday that it has opted to allocate as much as US$458 million in direct financial support for SK hynix's initiative to establish a new facility in the state of Indiana.

The U.S. government will additionally extend loans of up to $500 million, all in accordance with the CHIPS and Science Act, as reported by the U.S. Department of Commerce.

Earlier in April, the company revealed a strategy to invest $3.87 billion to create a memory packaging plant focused on artificial intelligence (AI) products, along with an advanced packaging research and development facility located in West Lafayette, designed for the production of next-generation memory chips, according to the Yonhap news agency.

“By investing in firms like SK hynix and communities such as West Lafayette, the bipartisan CHIPS and Science Act continues to enhance America's global technology leadership,” stated U.S. Secretary of Commerce Gina Raimondo.

The Commerce Department noted that this agreement “marks a significant advancement in securing the U.S. supply chain,” explaining that the initiative will help address “a critical gap in the U.S. semiconductor supply chain.”

“SK hynix is eager to partner with the U.S. government, the state of Indiana, Purdue University, and our American business collaborators to forge a strong and resilient AI semiconductor supply chain in the United States,” stated SK hynix CEO Kwak Noh-Jung.

In addition, other leading global chip manufacturers like TSMC, Intel Corp., and Micron Technology have also completed their agreements with the U.S. government for subsidies under the CHIPS Act.

Furthermore, Samsung Electronics Co. is currently negotiating with Washington for a subsidy amounting to $6.4 billion in direct funding, as per the report.