Samsung Chooses Texas For Its New $17 Billion Chip Plant

Published on 17 Mar 2022

A new $17 billion (approximately Rs. 1,26,480 crore) factory in Taylor, Texas, will provide high-level semiconductors for ideas including mobile, 5G, high-performance computing, including artificial intelligence. Samsung said it had selected Taylor as the site.

The South Korean electronics giant claimed the factory will generate 2,000 high-tech jobs, with building beginning in the first half of 2017 and manufacturing beginning in the second quarter of 2024. Texas Governor Greg Abbott estimates that at least 6,500 manufacturing jobs would be created as a result of the project.

This isn't the first time Intel has examined a location in Arizona or New York for the factory, which will be far larger than ’s sole other US chip plant in Austin. The state's infrastructure, political assistance, and closeness to the company's current factory all played a role in its decision to locate in Texas.

As a result, Samsung has joined TSMC and Intel in a drive to increase chip contract production in the United States, which is considered a vital area of rivalry against China.

Chip manufacture and research in the United States will be boosted by billions of dollars in government support from President Joe Biden's government in order to keep up with China in innovative technologies and also to address important sectors like the automotive industry.

National Security Advisor Jake Sullivan and US National Economic Council Director Brian Deese issued a joint statement hailing Samsung's commitment to the U.S. supply chain.

With Texas Senator John Cornyn and Samsung Electronics Vice Chairman Kinam Kim standing at his side, Abbott said the company's choice to locate in Texas is proof that the state's economy is founded on cheap taxes, sensible regulations, and well-developed public infrastructure.

KRW 300 billion (approximately Rs. 1,880 crores) to KRW 400 billion (about Rs. 2,510 crores) in damages were caused to Samsung's existing chip facility in Austin by a multi-day, extensive power outage in Texas last winter.

The power system is "stable, robust, and dependable," said Abbott when questioned about the plant's electrical supply on Tuesday. According to insiders, the new site in Williamson County, Texas, which includes Taylor, provided Samsung the finest incentives package of all the locations it was considering.

See also: How Danish media companies are taking on Big-Tech together

National Security

As a matter of "national security necessity," Cornyn urged the Biden government to increase its monetary support for luring chip makers to the United States. For Cornyn, the world might be "at their mercy" when it comes to key semiconductor supplies if China continues to saber-rattling.

To thank the Biden government for "creating a climate that supports firms like Samsung as we endeavor to develop leading-edge semiconductor production in the United States," Samsung's Kim said.

Additionally, we are grateful to the administration and Congress for their bipartisan cooperation in quickly enacting government incentives for domestic chip manufacturing and innovation. Beyond sophisticated logic circuits for mobile devices and self-driving cars, Samsung has not said what the new factory would produce.

ASML-made equipment might be used to produce 5-nanometer semiconductors for significant customers like Qualcomm according to analysts. Samsung's current US factory in Austin, Texas, primarily manufactures chips with a diameter of 14 nm and a thickness of 28 nm. Samsung said the Taylor location, located roughly 25 miles (40 kilometers) north of Austin, has a total area of further than 5 million square feet.

While in the US last week, Samsung Electronics Deputy Chairman Jay Y. Lee met with White House officials and executives from firms such as Google, Amazon, and Microsoft.


Featured image: Design photo created by tirachardz3k -



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