SK Hynix ADRs rose 2.72% to $162.34 on Thursday following the company's groundbreaking ceremony for a more than $4 billion advanced packaging and research facility in Indiana. According to reports from NDTV Profit, the company's American Depository Receipts have gained 13.59% over the past month, demonstrating strong investor confidence in the expansion plans. The rally reflects continued market optimism about the company's strategic US expansion.
The facility at Purdue Research Park in West Lafayette will house a next-generation high-bandwidth memory (HBM) packaging line and an AI semiconductor research and development centre. As reported by NDTV Profit, cleanroom operations are expected to begin in the second half of 2028. The Indiana project will bring SK Hynix closer to major US technology customers including Nvidia, Microsoft and Google, positioning the company to capitalize on the rapid buildout of AI data centres.
SK Hynix holds a dominant 58% share of global HBM revenue in the first quarter of 2026, significantly ahead of Samsung Electronics and Micron Technology, which each accounted for 21%. According to NDTV Profit, the company is expanding its US footprint as demand for HBM continues to rise with the rapid buildout of AI data centres. HBM enables faster data transfer with lower power consumption and has become a critical component in advanced AI systems, supporting the company's market leadership position.
The US government has supported the project with $458 million in CHIPS Act grants and up to $500 million in loans. As reported by NDTV Profit, SK Hynix has also approved about 54.3 trillion won, or $38.3 billion, in investments through 2031. The company expects the facility and related supply-chain investment to create around 7,000 direct and indirect jobs, demonstrating the significant economic impact of this major manufacturing investment.
SK Hynix's Nasdaq-listed ADRs began trading in July at $149 per ADR and the US offering raised about $26.5 billion, expanding the company's access to global investors. According to NDTV Profit, the ADRs also gained sharply earlier this month after six brokerages initiated coverage with bullish ratings, citing SK Hynix's HBM leadership and AI exposure. Ten ADRs represent one ordinary SK Hynix share, reflecting the company's strong international market presence and investor confidence in its strategic US expansion.
