Investment plan

SK Group’s US$22 billion chip, energy and bioscience investment plan

The South Korean group SK will inject $22 billion into new semiconductor, green energy and bioscience projects in the United States.

The country’s second-largest conglomerate includes the world’s second-largest memory chip maker SK Hynix, as well as SK Innovation, the parent company of South Korea’s biggest refiner SK Energy and battery maker SK On.

President Joe Biden will meet virtually on Tuesday with SK Group President Chey Tae-won will discuss the company’s investments in manufacturing and employment in the United States, the White House said earlier.

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The investments are in semiconductors, green energy and biosciences, “creating tens of thousands of new high-tech, high-paying American jobs,” SK said in a statement released in the United States.

They will complement its $7 billion investment to build two new gigafactories in Tennessee and Kentucky as part of a joint venture with Ford Motorhe added.

The announcement is “further proof of the success of the administration’s efforts to create more resilient and secure supply chains and outpace the rest of the world in the technologies of the future,” a White House spokesperson said.

SK Group plans to invest $15 billion in the semiconductor industry through research and development programs, materials, and the establishment of an advanced packaging and testing facility.

It will spend an additional $5 billion on other green energy ventures, including electric vehicle (EV) charging systems, green hydrogen production, battery materials and recycling.

The $22 billion announced Tuesday is part of the $52 billion the SK chairman said last year he plans to invest in the United States through 2030.

In May, SK Group announced that it would invest 247 trillion won ($195.24 billion) in the semiconductor, battery and biopharmaceutical sectors over the next five years in South Korea and abroad. the stranger.

  • Reuters with additional editing by Sean O’Meara

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Sean O’Meara

Sean O’Meara is an editor at Asia Financial. He has been a newspaper man for over 30 years, working for local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. Passionate about football, cricket and rugby, he is particularly interested in the financing of sport.