SK Group of South Korea will Invest $22 Billion to US, Boost Chipmaking Industry and Clean Energy

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South Korea’s second-largest company has pledged to invest over $22 billion in the United States, with plans including prioritizing production of chips and investing in clean energy resources.

The SK Group has made an announcement that will help them meet their needs for the next few years. With a forecast of weak consumer demand, it’s no surprise they’re taking an opportunity to widen their market. It is also beneficial to the company how recently the US Senate voted on increasing production of semiconductors within America.

When the SK Group met with President Biden virtually, they’ve discussed the steps that would take place once the plan commences. According to the group, the recent deal could potentially open up 15,000 jobs for Americans.

The newly-agreed partnership between S.K Group and the United States is expected to add 20,000 SK Group-backed jobs to its current 4,000. US authorities did not disclose the exact date of the plan yet.

The SK Group announced that the billions of dollars of investment will go into various industries, most especially in the production of electric car batteries, semiconductors, and pharmaceuticals.

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Meanwhile, Ford and the SK Group have announced plans for a $14 billion investment, creating gigafactories  in Tennessee and Kentucky, announced Tae-won Chey, the chairman of Ford.

Biden said he is delighted with the plans by the SK Group. He said that this is “evidence that the United States, Korea and its allies are back, and winning the technology competition of [the] 21st century.”

“In the past, these kinds of technology investments went to China,” the president said.

In his visit to South Korea last May, President Biden witnessed the strides that country has made in terms of manufacturing. The US leader also met with Hyundai Chairman and visited Samsung’s factory.

Biden felt a little let down after he missed the opportunity to meet with members of S.K group during their conference, but he said that the virtual meeting was essential since he tested positive for Covid days prior to the meeting.

President Joe Biden posted a video on social media showing him waving to the members while he is from a balcony in White House, where he had been isolated during the conference. “I feel so badly — I’m so close to you,” he said in the Twitter video.

Plans to strengthen ties with America

The SK Group further declared that they plan to strengthen their ties with the US.

In a statement, SK Group said:

According to the company’s statement:

… S.K. companies increase their presence around the world and in the U.S., driven by a mission to build businesses that have a positive impact on the environment and society. S.K. companies have more than $13 billion in U.S. assets with plans to invest an additional $30 billion by the end of 2025. Over that same period, S.K. companies are expected to grow from a combined 4,000 U.S. employees today to 20,000 employees.

The U.S. expansion and investments will largely be focused on clean energy and technology, including batteries for electric vehicles, charging infrastructure for electric vehicles, hydrogen energy and energy storage solutions. Semiconductors and life sciences also will be areas of emphasis.

S.K., which has operated in the U.S. for more than three decades, has a strong base in the U.S., with sites in more than a dozen states and the District of Columbia.

Read the full statement here.

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The company’s second quarter within the chipmaking department was a record-breaking success, but they expect sales in the next few quarters to be down. The chipmaking unit expects that smartphones and P.C.’s using their products as main components will have lower than projected sales in the coming months.

The group’s chips are found in many devices, including Apple products.

Source: CNN


Opinions expressed by US Business News contributors are their own.

Ivan Ryan

Posted by Ivan Ryan

Ivan is a digital marketer with an interest in business. He loves reading self-help books and memoirs of successful people in business.

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