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In an effort to create more jobs and invest in the United States, the SK Group, one of the largest corporations in South Korea, announced they will be investing 22 billion dollars. The plan includes increasing production of chips as well as clean energy resources for America.
The SK Group made its important announcement recently after experts in the company forecasted that consumer demand for their products will be weak in the second quarter of 2022. The decision is timely and advantageous to the company as the U.S Senate recently voted and supported a bill aimed at increasing semiconductors production within the country.
The leaders of the corporation met with US president Joe Biden virtually due to restrictions. However, the plan was finalized and the deal is set to open up more than 15,000 jobs across the country.
Although no timeline was disclosed yet, the outlook is bright. The new plan will increase the workforce of SK Group by 20,000 in America in three years’ time – in addition to the already existing 4,000 employed by the group.
Further, the SK Group has announced that part of the investment is the billions of investments to improving and creating electric vehicle batteries, pharmaceuticals and semiconductors.
The creation gigafactories aim to produce new technologies and innovations that will help the American economy. The project has been announced by Tae-won Chey, Ford’s Chairman & CEO. The construction is given $14 billion by the SK Group and will be situated in Tennessee and Kentucky.
US President Biden was happy with the announcement, saying that this is “evidence that the United States, Korea and its allies are back, and winning the technology competition of [the] 21st century.”
Biden added, “In the past, these kinds of technology investments went to China.”
During his last visit to South Korea, Biden saw the advancements made by country in terms of manufacturing. He also met with Hyundai’s chairman and visited Samsung factory which helped him understand where South Korea is in innovation at the current time.
President Joe Biden said he was a little disappointed that he couldn’t be there in person to meet with the members of SK Group in the discussion of their plans. Meeting virtually was essential as the president had to be in isolation due to being positive of Covid 19 prior to the schedule.
“I feel so badly — I’m so close to you,” he said. Biden posted a video on his Twitter account with him waving to the group from the White House balcony, where he was isolated for the time being.
SK Group and the US
The SK Group declared their intention in continuing their ties with the US.
The group said in a statement:
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.
The second quarter was a stellar time for this company. However, they have projected that sales of their memory chips will be down in the following months.
The group has established themselves as a major supplier of chips to many companies including Apple.
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