Leaders of the gigantic SK Group virtually met with US President Joe Biden on Tuesday to announce the historic deal, which is expected to create more than 15,000 new jobs.
The SK Group said it would direct the funding towards increased production and development of semiconductors, electric vehicle batteries and pharmaceuticals.
Biden touted the announcement as “proof that the United States, Korea and their allies are back and have won the tech contest of [the] 21st century.”
“In the past, these types of technology investments were directed to China,” he said.
“I feel so bad – I’m so close to you,” he told the SK delegation, later posting a photo of himself waving from a balcony on social media.
The news came as SK Hynix, the group’s chipmaking unit, warned on Wednesday that it expects sales of some electronics products to decline in the coming months.
While the company had strong sales in the second quarter – with record revenue – it anticipates a slowdown in demand for memory chips in the second half.
Indeed, shipments of PCs and smartphones using these components could be “lower than originally expected,” SK Hynix said in a statement when presenting its results.
– CNN’s Donald Judd contributed to this report.
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