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Korea Adds $40B to US Semiconductor Capacity Growth
The leading South Korean conglomerates guaranteed to invest around 45 trillion won ($40 billion) to the US, further building bilateral economic relations. During South Korean President Moon Jae-In’s US state visit, the companies announced they would play a critical role in facilitating the US supply chains, by beefing capacity in semiconductors and electric vehicle (EV) batteries. The four conglomerates participating in the project include Hyundai Motor Group, LG, Samsung, and SK Group. Previously, Hyundai Motor shared that it would provide 8.4 trillion won ($7.4 billion) for various US operations by 2025. Under the investment, Hyundai would focus on mobility solutions, including autonomous driving, EVs, facility enhancements, hydrogen cars, and robotics.
The global IC shortages have drawn attention to semiconductor capacity, but they are not suffering. IC Insights reported that revenue was up 21% Y/Y to $101B as shown in the next table.
The leading South Korean conglomerates guaranteed to invest around 45 trillion won ($40 billion) to the US, further building bilateral economic relations. During South Korean President Moon Jae-In’s US state visit, the companies announced they would play a critical role in facilitating the US supply chains, by beefing capacity in semiconductors and electric vehicle (EV) batteries. The four conglomerates participating in the project include Hyundai Motor Group, LG, Samsung, and SK Group. Previously, Hyundai Motor shared that it would provide 8.4 trillion won ($7.4 billion) for various US operations by 2025. Under the investment, Hyundai would focus on mobility solutions, including autonomous driving, EVs, facility enhancements, hydrogen cars, and robotics.
The global IC shortages have drawn attention to semiconductor capacity, but they are not suffering. IC Insights reported that revenue was up 21% Y/Y to $101B as shown in the next table.
Samsung Electronics Co. would inject 19 trillion won ($17 billion) in building a new chip foundry plant in the US. LG Energy Solution and SK Innovation would invest a combined 15.7 trillion won ($14 billion) to numerous US projects. After resolving their long-standing battery tech dispute in April, the two companies are now ready to take on joint operations. LG Energy Solution is also collaborating with GM to build their second battery cell manufacturing factory. This factory’s 70GWh production capacity would notably power more than 1 million EVs per year. LG Energy Solution also plans to establish another plant with a 70GWh annual production capacity in partnership with GM. To this end, it would provide an additional 5 trillion won ($4.4 billion) investment. SK Innovation’s strategic 6 trillion won ($5.3 billion) joint venture with Ford Motor would boost the US EV rollout. SK Innovation had previously funded 3 trillion won ($2.6 billion) to establish an EV battery factory in the US. The battery company also revealed its plans to build another EV battery factory. This new investment would increase SK Innovation’s plant production capacity to 21GWh per year, powering over 300,000 EVs yearly. SK Hynix, would invest 1 trillion won ($1 billion) in establishing an R&D facility in Silicon Valley, focusing on AI technologies and NAND solutions.
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