Samsung, Hyundai, SK, LG heads reviewing W40tr. of investment ahead of Moon-Biden summit

May 17, 2021, 08:30 am

		0
Samsung Electronics’ chip manufacturing plant in Texas/ Source: Samsung Electronics

		0
Hyundai Motor’s factory in Alabama/ Source: Hyundai Motor

AsiaToday reporter Hong Sun-mi

South Korea’s top four conglomerates including Samsung Electronics, Hyundai Motor Group, SK Group and LG Group are reportedly planning to accompany President Moon Jae-in for his first summit with U.S. President Joe Biden in Washington, D.C. next week. Attention is now focused on whether these companies will invest in the United States.

Biden has been encouraging foreign companies to make local investments through his policies - such as strengthening chip and battery supply chains, the Buy American policy and Green New Deal initiative. Hyundai Motor and LG Energy Solution recently announced their investment plans in the United States to respond to Biden’s policies. Industry observers say Samsung Electronics and SK Innovation may announce detailed plans in time for the Moon-Biden summit.

According to industry sources Sunday, SK Group Chairman Chey Tae-won, Samsung Electronics Vice Chairman Kim Ki-nam, LG Energy Solution CEO Kim Jong-hyun, and SK Bioscience chief Ahn Jae-yon will accompany Moon on the summit as an unofficial business delegation. The Moon-Biden summit is expected to take place at the White House on May 21.

The four major conglomerates have decided or are reviewing investments worth 40 trillion won combined.

Samsung Electronics is mulling 20 trillion won (US$17 billion) investments for a new foundry plant. Samsung is reviewing potential locations for the new factory including Texas, Arizona, and New York, while Austin, Texas, is said to be the most likely candidate. The tech giant continues to be under pressure from the U.S. government. Last month, it was invited to a special White House meeting on the global semiconductor shortage. This month, the chipmaker was also invited to a conference held by the US Department of Commerce to further discuss the chip shortage issue. Industry observers say this is partly why Samsung officially announced its investment plan.

Hyundai Motor announced last Thursday that it would invest 8.1 trillion won (US$7.4 billion) in the US by 2025 for an electric vehicle production facility, and other areas including hydrogen, urban air mobility, robotics and autonomous driving technologies. Attention is drawn to whether specific investment location will be revealed following the Moon-Biden summit.

LG Energy Solution said last month that it would invest 2.7 trillion won with General Motors (GM) to build a second joint battery factory in Ohio. Industry observers say the two companies will soon reveal specific location for investment. In addition, LGES said it will make an independent investment of more than 5 trillion won to establish two new battery plants in the US by 2025.

SK Innovation, which is running a battery factory and building a second in Georgia, is planning to construct two more battery factories worth 3 trillion won combined. Samsung SDI is also considering to build a battery factory through a local joint venture.

#Samsung #Hyundai #SK #LG #investment