WEST LAFAYETTE, Ind. — A microelectronics company is changing course in its plans to build in West Lafayette.
SkyWater confirmed Friday it has released its option on land on the Purdue University campus that had been tagged for a $1.8 billion semiconductor research and development facility.
(NOTE: The video in the player above is from SK Hynix's April 3 announcement to build in West Lafayette.)
Despite the decision, a Purdue spokesperson said SkyWater will "remain a valued partner with research opportunities in the works."
A statement from SkyWater said the company decided to "reassess our plans for new fab construction in conversations with the State of Indiana."
"While we understand that businesses’ plans and timelines can change for a variety of reasons, Indiana’s microelectronics industry continues to grow at a rapid pace. We remain committed to supporting SkyWater’s growth in Indiana when the federal process is solidified," the Indiana Economic Development Corporation said in a statement.
SkyWater announced plans in July 2022 to build the 600,000-square-foot facility in the Discovery Park District. It was expected to create 750 high-wage jobs in central Indiana.
"While we don’t have a definitive plan targeting new fab construction in Indiana, we remain committed to growing the microelectronics ecosystem in the U.S., including Indiana, with emphasis on providing fab access and production support for emerging and strategic technologies," SkyWater's statement continued.
On Wednesday, South Korean company SK Hynix announced plans to build a $4 billion microchip factory in Purdue's Research Park. That facility is expected to be set up by 2030.
The 2022 Chips and Science Act provided federal funding to boost manufacturing of microchips domestically with the goal of decreasing the dependency on other countries.