06:33 AM EDT, 08/06/2024 (MT Newswires) -- NVIDIA ( NVDA ) supplier SK Hynix has signed a non-binding preliminary memorandum of terms with the US Department of Commerce under which the US government will provide the memory chip maker with up to $450 million in proposed federal incentives, the Department of Commerce said Tuesday.

The proposed federal incentives will be provided under the CHIPS and Science Act to help create a high-bandwidth memory advanced packaging fabrication and research and development facility, the department said.

These incentives complement SK Hynix's plans to invest around $3.87 billion to build a memory packaging plant in West Lafayette, Indiana for artificial intelligence products, as well as an advanced packaging R&D facility, the department added.

Mass production at the facility is expected to begin in H2 2028, the department said.

Price: 101.73, Change: +1.28, Percent Change: +1.27