Samsung, SK, Hyundai Motor, and Korean Air to boost economic cooperation with large-scale U.S. investments
At the upcoming Korea-US summit on the 25th, major South Korean industries are expected to reveal concrete plans for investment and cooperation in the United States. Key sectors such as semiconductors, batteries, and automobiles will present large-scale projects and strategic partnerships with U.S. companies, further strengthening bilateral economic ties.
Samsung Electronics eyes Taylor plant expansion to bolster global semiconductor supply chain
Industry insiders predict that Samsung Electronics may announce plans to expand its semiconductor plant in Taylor, Texas. The company has already pledged to invest $17 billion in the site by 2030 and later increased its total U.S. investment commitment to $37 billion.
Recently, Samsung signed a foundry supply contract worth nearly 23 trillion won with Tesla and concluded a next-generation chip supply agreement with Apple. Samsung Chairman Lee Jae-yong personally visited the U.S., holding a video call with Tesla CEO Elon Musk to discuss cooperation details. Musk remarked that the $16.5 billion figure was “only the minimum” and actual production could be several times higher.
SK hynix is also moving forward with a $3.87 billion investment in West Lafayette, Indiana, to build a next-generation HBM semiconductor back-end process plant. The facility is targeted for mass production in 2028 and is expected to create about 1,000 jobs.
Battery makers accelerate U.S. production expansion
South Korea’s three major battery makers are stepping up U.S. investments. LG Energy Solution operates production bases in Michigan, Ohio, and Tennessee, and is building standalone plants in Lansing, Michigan, and Arizona. Joint ventures include a plant with Hyundai Motor in Georgia and one with Honda in Ohio. In June, its Holland, Michigan plant became the first among global battery companies to begin mass production of LFP batteries for energy storage systems (ESS).
Samsung SDI runs a joint plant with Stellantis in Indiana and is working on a second facility with Stellantis and another with GM, both set for completion in 2027. It also plans to secure a local ESS battery production line in October.
SK On operates two standalone plants under SK Battery America and is preparing to launch BlueOval SK’s (BOSK) first joint plant with Ford in Kentucky during the third quarter of this year. Three additional plants—two BOSK sites and one joint venture with Hyundai—are under construction for commercial operation in 2026. SK On’s total U.S. investment for its six plants is estimated at $10.8 billion.
A battery industry official noted, “Given tariffs and subsidy policies, continued U.S. investment is inevitable,” but added that “a balanced strategy is needed to avoid undermining domestic industry investment.”
Hyundai Motor and Korean Air commit to long-term investments
Hyundai Motor Group announced in March that it will invest $21 billion in the U.S. automotive, parts, logistics, steel, and future industry sectors by 2028. This includes expanding capacity at its Hyundai Motor Group Metaplant America (HMGMA) in Georgia, building an electric arc furnace steel mill in Louisiana, and cooperating with U.S. firms in robotics, artificial intelligence (AI), and energy infrastructure.
Since entering the U.S. market in 1986, Hyundai has invested a total of $41.5 billion in the country.
In March, Korean Air signed supply contracts worth $32.7 billion with Boeing for aircraft purchases and with GE Aerospace for aircraft engine production. These long-term agreements aim to secure competitiveness as global air travel demand recovers.
The investment announcements at the summit are expected to further solidify the Korea-US economic alliance, contribute to global supply chain stability, and deliver tangible outcomes in high-tech industrial cooperation.