SK Hynix is set to receive 450 million dollars in U.S. grants to build an advanced chip packaging plant and a research facility in Indiana.

The U.S. Commerce Department announced on Tuesday that it signed a non-binding preliminary memorandum of terms(PMT) with the world’s second largest chipmaker to provide up to 450 million dollars for funding an advanced packaging plant and a research and development facility for artificial intelligence(AI) products. 

Under the PMT, up to 500 million dollars in government loans are also available to SK Hynix. 

In addition to grants and loans, SK Hynix is expected to qualify for a 25 percent investment tax credit. 

The chip manufacturer announced in April that it would invest three-point-87 billion dollars to build an advanced packaging plant and R&D facility in Indiana.