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US officials work with foreign investors to fill supply chain gaps

Created at 11 Aug · 1:01 AM1 source↑ Market-relevant
IN SHORT

U.S. officials are collaborating with foreign investors to identify and address gaps in domestic manufacturing supply chains, aiming to help small and medium-sized businesses scale up to meet rising demand. This initiative is seen as crucial for leveraging increased foreign investment in the U.S.

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Key Numbers

$5 billionHanwha Philly Shipyard investment pledge
10,000potential jobs at Hanwha Philly Shipyard
2,000current jobs at Hanwha Philly Shipyard
$200 millionHanwha Philly Shipyard investment to date
1,000+suppliers per ship built by Hanwha
two-thirdsU.S.-based suppliers for Hanwha
$3 billionSBA funding for manufacturers in 2025
$32 millionSBA funding for shipbuilders in 2025
90,000factories lost over past decades
5 millionmanufacturing jobs lost over past decades

Who's Involved

Chris Pilkerton
Assistant Secretary of the Treasury and leader of CFIUS
Kelly Loeffler
Small Business Administrator
Donald Trump
U.S. President
David Kim
CEO of Hanwha Philly Shipyard
Hanwha Ocean
Acquirer of Philadelphia shipyard
Hanwha Group
Acquirer of Philadelphia shipyard
Bluefors
Finnish company that acquired a quantum refrigeration company

↳ Why This Matters

The initiative aims to strengthen U.S. manufacturing resilience and competitiveness by ensuring that increased foreign investment translates into robust domestic supply chains, supporting job growth and technological advancement.

Key facts

  • U.S. officials are collaborating with foreign investors to identify and fill gaps in domestic manufacturing supply chains.
  • The initiative aims to help small and medium-sized businesses scale up to meet rising demand.
  • Hanwha Group has pledged to invest $5 billion in a Philadelphia shipyard it acquired, potentially creating 8,000 new jobs.
  • A new 'Strategic Vendor Program' is being piloted to strengthen domestic supply chains.
  • The Treasury has launched a new website to improve transparency and understanding of CFIUS foreign investment reviews.

U.S. officials are actively working with foreign investors to address critical gaps within the nation's manufacturing supply chains, aiming to bolster domestic production and support the growth of small and medium-sized businesses. This effort is seen as vital to capitalizing on a surge in foreign investment, which officials attribute in part to President Donald Trump's trade policies and deregulation.

Assistant Secretary of the Treasury Chris Pilkerton, who also leads the Committee on Foreign Investment in the U.S. (CFIUS), and Small Business Administrator Kelly Loeffler highlighted these initiatives during a visit to a Philadelphia shipyard. The shipyard was acquired by South Korean firms Hanwha Ocean and Hanwha Group in December 2024, following a CFIUS review.

David Kim, CEO of Hanwha Philly Shipyard, stated that the company plans to invest $5 billion in the facility over the coming years, potentially expanding its workforce from 2,000 to 10,000 employees. The company has already invested over $200 million in upgrades. Kim noted that Hanwha relies on more than 1,000 suppliers for each ship, with approximately two-thirds currently based in the U.S., a number expected to grow as the shipyard accelerates production and adopts AI-based shipbuilding technologies.

Pilkerton discussed the new 'Strategic Vendor Program,' currently in a pilot phase, designed to strengthen domestic supply chains and support foreign-invested businesses. He shared an example of a Finnish company, Bluefors, which acquired a quantum refrigeration firm in Syracuse, New York, and faced difficulties finding a domestic supplier for dry compressors.

To streamline the process, Pilkerton mentioned efforts to make CFIUS reviews more transparent and efficient. The Treasury has introduced a new website to guide companies through the evaluation process, and a 'Known Investor Program' aims to expedite reviews for frequent investors. Loeffler added that the SBA provided approximately $3 billion in funding for manufacturers in 2025, with $32 million allocated to shipbuilders, to help rebuild capacity lost over recent decades.

Frequently asked questions

The primary goal is to identify and close gaps in U.S. manufacturing supply chains by working with foreign investors and helping domestic businesses scale up.

Hanwha Ocean and Hanwha Group, which acquired the Philadelphia shipyard, and their CEO David Kim were highlighted.

It is a pilot program aimed at strengthening domestic supply chains and supporting foreign-invested businesses in the U.S.

The Treasury has launched a new website for CFIUS reviews and created a 'Known Investor Program' to speed up processes for frequent investors.

What Happens Next

01The 'Strategic Vendor Program' is expected to move beyond its pilot phase.
02Further details on vendor identification for the 'Strategic Vendor Program' are anticipated.
03Hanwha Philly Shipyard is expected to implement its $5 billion investment plan.

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Cadence

How It Developed

U.S. officials are working with foreign investors to identify supply chain gaps.
Assistant Secretary of the Treasury Chris Pilkerton and Small Business Administrator Kelly Loeffler spoke about the initiative.
Hanwha Ocean and Hanwha Group acquired a Philadelphia shipyard in December 2024.
Hanwha Philly Shipyard CEO David Kim pledged $5 billion in investment and a potential job increase to 10,000.
Pilkerton mentioned a new 'Strategic Vendor Program' to strengthen domestic supply chains.
Pilkerton cited an example of a Finnish company unable to find a domestic supplier for dry compressors.
The Trump administration aimed to make CFIUS reviews more transparent and quicker.
The Treasury launched a new website for understanding CFIUS evaluations.

Sources

T1
US officials work to close supply chain gaps as foreign investment growsReuters

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