South Korean SK Group Invests $22 Billion In The U.S.

The United States will receive an investment of $22 billion from the second largest conglomerate in South Korea. This investment will be made in high-priority areas such as the chip industry and clean energy.
The massive chipmaking unit of the group has just issued a warning about weaker consumer demand for technology products for the remainder of the year, and the announcement of the funding comes at the exact same time.
On Tuesday, leaders from the massive SK Group met virtually with the Vice President of the United States, Joe Biden, to announce the historic deal, which is anticipated to result in the creation of more than 15,000 new jobs.

Biden stated that the South Korean multinational corporation has plans to increase its workforce in the United States from 4,000 to 20,000 people by the year 2025,

although the specific timeline for the investments was not disclosed.

SK Group has stated that it plans to invest the funding in the increased production and research and development of pharmaceuticals, as well as batteries for electric vehicles and semiconductors.
According to statements made by the chairman of the group, Tae-won Chey, which were made public by the White House, up to $14 billion will be invested in the construction of two new gigafactories in the states of Tennessee and Kentucky in partnership with Ford (F).
Biden hailed the announcement as “evidence that the United States, Korea and its allies are back, and winning the technology competition of [the] 21st century.” [Citation needed]
He stated that in the past, investments of this nature in technological advancement were made in China.

During his trip to South Korea in May, the President stated that he was able to get a more in-depth look at the country’s advanced manufacturing capabilities.

During this trip, the President also visited a Samsung (SSNLF) factory and met with the chairman of Hyundai. Biden, who acknowledged the irony of welcoming guests from South Korea while he was isolating himself mere yards away, participated in the meeting virtually from the White House residence after testing positive for Covid-19 the previous week. He also acknowledged that he had tested positive for Covid-19.
He told the South Korean delegation, “I feel so badly—I’m so close to you,” and later posted a picture on social media showing him waving from a balcony. “I’m so close to you,” he said.

SK Group had already committed $30 billion in United States investments by the beginning of this year. The commitment is valid until the end of 2025. On Tuesday, Biden and Chey stated that the newly announced investment was in addition to that.
The announcement came on the same day that SK Hynix, the group’s chipmaking unit, issued a warning that it anticipated a drop in sales of certain electronic products in the upcoming months.
The company forecasts that the demand for memory chips will decrease in the second half of the year, despite the fact that it experienced record-breakingly high levels of revenue during the second quarter as a result of its robust sales.
This is due to the fact that shipments of personal computers and smartphones that make use of those components could be “lower than initially predicted,” as SK Hynix stated in a statement during its earnings presentation.

The company is the second largest producer of flash memory chips in the world and serves as a supplier to a variety of brands, including Apple (AAPL).

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