The South Korean conglomerate will invest around $112bn in semiconductors and their materials with investment targets being forming the Yongin semiconductor cluster, the expansion of semiconductor factory, and the expansion of materials, parts, and equipment-related facilities
SK Group announced plans to invest KRW247 trillion won ($195.24bn) over the next five years in the areas of semiconductors, batteries, and biopharmaceuticals.
The South Korean conglomerate will recruit 50,000 people to develop its business in the three areas.
To support artificial intelligence (AI) and digital transformation, SK Group will invest KRW142 trillion ($112bn) in semiconductors and their materials.
The South Korean group said that investments in semiconductors and materials will be focused primarily on developing a semiconductor ecosystem to bolster semiconductor competitiveness.
Investment targets include forming the Yongin semiconductor cluster, the expansion of semiconductor fab, as well as the expansion of materials, parts, and equipment-related facilities like special gases and wafers.
At the Yongin semiconductor cluster, the group had previously announced plans to invest around $106bn to construct four semiconductor fabrication plants after 2022. The group’s subsidiary SK hynix and more than 50 of its domestic and foreign partner companies are expected to join the semiconductor cluster project.
SK Group has allocated an investment of KRW67 trillion ($53bn) in green businesses such as electric vehicle batteries and battery materials, hydrogen, wind power, and new and renewable energy.
The South Korean conglomerate will invest KRW24.9 trillion ($20bn) in digital, and KRW12.7 trillion ($10bn) in biopharmaceutical and other industries.
In South Korea alone, the group will invest KRW179 trillion ($141bn), which is expected to contribute to uplifting the country’s economy.
Earlier this month, SK Group said that it plans to inject an additional $30bn into the US by the end of 2025. The investment will result in almost tripling its US assets and increasing the number of its employees in the country by four times.
The new assets of the group include electric vehicle battery plants in Georgia, Tennessee, and Kentucky and a silicon carbide wafer facility in Michigan, among others.
Earlier this week, another South Korean conglomerate, Samsung Group, announced a large-scale investment, of KRW450 trillion ($356bn) over the next five years in semiconductors, biopharmaceutical, and next-generation technologies.