Samsung Electronics Announces A New $17 Billion Semiconductor Fab Factory in Texas, U.S

Samsung Electronics Announces A New $17 Billion Semiconductor Fab Factory in Texas, U.S

by Swarajya Staff - Wednesday, November 24, 2021 11:35 AM IST
Samsung Electronics Announces A New $17 Billion Semiconductor Fab Factory in Texas, U.SSamsung Austin Facility

Samsung Electronics on Wednesday announced its plans to build a state-of the art $17 billion semiconductor chip manufacturing plant in U.S state of Texas.

The South Korean electronic gain said it will break ground on the advanced semiconductor fab site in Taylor, near Austin, in the first half of 2022, targeting the second half of 2024 to have the facility operational.

The new facility will manufacture products based on advanced process technologies for application in areas such as mobile, 5G, high-performance computing (HPC) and artificial intelligence (AI).

NEC Director Brian Deese and National Security Advisor Jake Sullivan welcomed Samsung's decision to build a new semiconductor facility in Texas

"Securing America’s supply chains is a top priority for President Biden and his Administration. We welcome Samsung’s announcement today that it will build a new semiconductor facility in Texas, helping protect our supply chains, revitalizing our manufacturing base, and creating good jobs right here at home." the duo said in a statement.

In June this year, U.S. Senate passed the U.S. Innovation and Competition Act (USICA) which included a $52 billion in federal investments for the domestic semiconductor research, design, and manufacturing provisions in the CHIPS Act.

Why Samsung Chose Texas For Its New Semiconductor Manufacturing Site?

The Taylor site in Texas will span more than 5 million square meters and is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity along with its latest new production line in Pyeongtaek, South Korea.

After reviewing multiple locations within the U.S. for a potential manufacturing site, Samsung's decision to invest in Taylor was based on multiple factors, including the local semiconductor ecosystem, infrastructure stability, local government support.

“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said Texas Governor Abbott.

The proximity of proposed site to Samsung’s current manufacturing site in Austin, about 25 kilometers southwest of Taylor, was also a decisive factor in the choice of location as it will allow the company to share the necessary infrastructure and resources.

In Feb this year, Samsung was forced to temporarily suspend operations at its semiconductor factory in Austin due to power shortages i caused by deadly winter storms. The local power company had ordered the South Korean tech giant to halt operations. Besides Samsung, Austin has semiconductor facilities run by NXP Semiconductors, and Infineon Semiconductors.

The total expected investment of $17 billion, including buildings, property improvements, machinery and equipment, will also mark the largest-ever investment made by Samsung in the U.S.

The chip maker said that it has so far made a total investment in the U.S. of more than $47 billion since beginning operations in the country in 1978, and employs over 20,000 employees across the country.

This latest expansion of Samsung’s U.S. presence is expected to create over 2,000 high-tech jobs directly and thousands of related jobs once the new facility is in full operation.

Samsung Vice Chairman Lee Jae-yong recently made a weeklong visit to the U.S., meet with high-ranking White House officials, lawmakers and business leaders, said

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