South Korean electronics conglomerate SK Group said it will commit $22 billion to new investments in the U.S. to expand the supply chain.
The move is part of U.S. President Joe Biden’s efforts to create a more resilient and secure supply chain in the U.S.
SK Group is the second-largest conglomerate in South Korea and the chairman of the organization originally said it planned to invest more than $50 billion in the U.S. through 2030.
According to a report from Reuters, President Biden will meet with SK Group’s chairman to discuss the investments into semiconductor manufacturing and the jobs it will create.
The investment comes after many companies, American or otherwise, are expanding U.S. semiconductor manufacturing as a partial result of the ongoing chip shortage in the supply chain but also to expand reliability of the semiconductor supply chain if another pandemic or geopolitical issues emerge.
Samsung Electronics was reportedly considering building possibly up to 11 new fabs in Texas as part of a $200 billion investment. This is not confirmed but new filings in the region suggest the company is considering it.
Taiwan Semiconductor Manufacturing Co. (TSMC)is also constructing a new fab in Arizona that will be a state-of-the-art manufacturing facility expected to expand its presence in the U.S. TSMC along with Samsung also lobbied to allow foreign companies to participate in the CHIPS for America Act. That act will provide $52 billion in incentives to companies to build new fabs and create R&D for next-generation semiconductors.