Concerns Raised Over $3.8 Billion Chip Facility in West Lafayette

A South Korean company, SK hynix, wants to build a $3.8 billion manufacturing facility in West Lafayette, Indiana, but local residents are expressing concerns over the plan.

The facility would be an advanced chip-packaging plant, producing chips needed for phones, tablets, and computers. The Purdue Research Foundation has filed a rezoning petition for the project, which was recommended for denial by the Area Plan Commission in March.

The construction site is located north of Kalberer Road between Yeager Road and Tippecanoe County Road 50 West. The plans will go before the West Lafayette City Council for a final vote during its meeting at 6:30 p.m. May 5 at City Hall, 222 N. Chauncey Ave.

Residents have voiced concerns about the risks to their health and environment if land zoned as residential is rezoned to allow an industrial computer chip facility in the area. SK hynix originally planned to build on Site A, but now wants to use Site B across Yeager Road due to its larger size and better road access.

NK Kim, a senior vice president at SK hynix West Lafayette, said during a presentation: “Site B is the ultimate choice to locate our fab most effectively. However, we will listen to the voice of the community and if necessary we might go to Site A if the community so wish.”

Residents are pushing back against the move, citing concerns that two sides of Site B border homes. The plant would bring skilled jobs to central Indiana, with SK hynix planning to employ 1,000 direct hires, ranging from engineers to technicians.

Kim told News 8 through a translator: “SK hynix plans to employ 1,000 direct hires, and this will range from engineers to technicians. Once the company knows which site it will build on, it plans to build the facility quickly to allow for production to start. SK hynix’s rule is to begin mass production by the second half of 2028.”

Company representatives have reassured concerns about water contamination, explaining how water is filtered after use. They also told residents that endangered species in South Korea flourished near their semiconductor plant.