BuildBlock, a comprehensive real estate services company in the United States, announced the official launch of its plant development division, which will assist Korean materials, parts, and equipment (so-called "SoBuJang") companies in entering the U.S. market, particularly in the semiconductor and battery sectors. The company also revealed plans to expand this organization going forward.
Following the recent announcement of a 23 trillion won contract for Samsung Electronics’ Texas Taylor plant to manufacture Tesla’s AI6 chips on a consignment basis, as well as reports of a consignment production contract for Apple’s next-generation chips, it is expected that Korean companies in related industries will accelerate their entry into the U.S. market.
Already, due to the Biden administration’s Inflation Reduction Act (IRA) and CHIPS Act, many Korean companies focused on semiconductors and batteries have entered the U.S. market. With the launch of the second Trump administration, the OBBBA Act and strengthened tariff policies aimed at reducing the trade deficit are being implemented in earnest, further accelerating the expansion of manufacturing bases within the United States.
In response, major Korean conglomerates such as Samsung Electronics, Hyundai Motor Group, and LG Group have announced plans to expand their investments and production bases in the U.S. Their strategic partners and technology-driven small and medium-sized enterprises are also actively seeking to enter the American market. Furthermore, with the recent conclusion of mutual tariff negotiations between Korea and the U.S., which included a commitment to $350 billion in purchases and investments in the U.S., Korean companies’ entry into the U.S. is expected to increase even further.
However, for Korean companies considering entry into the U.S.-especially those planning to develop production bases or factories-it is not easy to take the first step. Building a factory in the U.S. with similar functions and scale as in Korea typically takes two to three times longer, and construction costs can be up to three times higher. According to BuildBlock’s U.S. Real Estate Research Center, which cited data from the World Bank, Korea is among the fastest in the world for obtaining permits to build a standard warehouse, whereas the U.S. requires more than three times as long. However, these statistics reflect the experience of U.S. companies operating within the U.S. For Korean companies lacking familiarity with U.S. real estate development regulations, practices, and networks, the costs associated with trial and error are inevitably much higher when pursuing development projects in America.
The primary goal of BuildBlock’s new plant division is to minimize the trial and error Korean companies face when entering the U.S., enabling them to establish a foothold in the American market quickly and independently of international political fluctuations. BuildBlock is already collaborating with Korean semiconductor and battery companies expanding into Texas and Indiana, supporting them in developing factories. The company offers a "pinpoint service" that addresses clients’ specific needs, ranging from site acquisition due diligence, master plan feasibility reviews, tax incentive negotiations, site work, architectural design, permitting, government relations, to construction management. To strengthen its plant development division, BuildBlock has recruited EPC (Engineering, Procurement, Construction) experts from major Korean conglomerates such as Hyundai and Samsung, as well as U.S.-licensed PE engineers and AIA architects, with plans for further large-scale hiring by the end of this year.
Aerial view of the semiconductor manufacturing plant in Austin, Texas, USA, where BuildBlock is currently participating in development
In addition to the plant division, BuildBlock operates a dedicated private client department that serves ultra-high-net-worth individuals by brokering and managing residential properties such as houses and condos, and supporting post-transaction work such as lease management. The company also has a separate corporate client division that brokers, develops, and manages investments in commercial real estate such as offices for general companies entering and investing in the U.S.
A BuildBlock representative stated, "Many Korean companies are facing the challenging task of having to enter the U.S. market," adding, "BuildBlock will take the lead in resolving real estate-related issues in the U.S., so our clients can focus solely on their core business," explaining the purpose behind the organization’s expansion and restructuring.
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