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SK Group Subsidiary Plans Covington, Georgia, Semiconductor Chip Factory

South Korea-based SK Group subsidiary company, SKC, and several business partners will invest more than $473 million to manufacture glass-based substrates for semiconductor chips in Covington, Georgia. The project is expected to create more than 400 new jobs in Newton County.

A Memorandum of Understanding was signed between the State of Georgia and SKC solidifying the project and location. This new facility will be developed on the SKC property, located at 3000 SKC Drive. The company expects to ramp up production by late summer 2023.

“SKC strived to develop innovative technology solutions by working with major U.S.-based semiconductor players for many years. The initial scientific research outcomes at Georgia Tech greatly inspired our disruptive, glass-based semiconductor solutions,” said Dr. Sung Jin Kim, SKC Director of New Business Development. “Our new technology will be key in enabling utmost performance with minimal power consumptions for high-performance computing, as well as for high-speed communication applications, and this technology is scalable for many other technology needs. Georgia will be a basecamp for SKC’s AI and high-speed data center semiconductor applications.”

SK Group is one of the largest conglomerates in South Korea, and this facility will be the third major investment by SK Group in the State of Georgia. In addition to the SKC location in Covington, SK Innovation is investing nearly $2.6 billion in developing two battery manufacturing facilities in Jackson County to supply electric vehicles.

“This announcement is a prime example of Georgia being at the forefront of addressing one of our nation’s most pressing supply chain roadblocks, which has affected so many U.S. manufacturers," said Governor Brian Kemp. "This decision by SKC speaks not only to the success they have found since first locating in Georgia, but also to the shared commitment we have in creating bold, innovative solutions right here in our state. Georgia’s workforce is trained, skilled, and ready to excel in the jobs of the future.”

Founded in 1976 as a specialty material company, SKC established itself in Newton County in 1996. Since that time, the facility has become one of the major Polyester films (PET film) producers in North America, providing high-quality, environmentally friendly service as a base-film market leader. Throughout the COVID-19 pandemic, the facility also pivoted manufacturing to produce face shields and other PPE safety products.

“SKC’s investment in Newton County, Georgia, will directly support the desperately needed domestic manufacturing of semiconductors,” said Georgia Department of Economic Development (GDEcD) Commissioner Pat Wilson. “It also speaks to the level of commitment Georgia brings to the table and the assets we provide companies seeking success here. To be able to announce that SK Group, one of the first Korean investors in Georgia, is once again choosing to do business here is yet another testament to the thriving relationship between our countries. Congratulations to all of our economic development partners involved.”

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