A mid a global shortage of microchips, Samsung Electronics has chosen to build its $17 billion semiconductor factory in Taylor, outside Austin, Texas.
The South Korean tech giant, in a regulatory filing, said the planned investment aims to meet the demand for advanced system semiconductors and help stabilize global chip-supply chains. Samsung said it plans to break ground for the new plant in the first half of 2022 and start mass production in the second half of 2024.
The Taylor site 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. 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).
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division.
“With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.
“We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the US.”
Texas Governor Greg Abbott hailed it as “the largest foreign direct investment in the state of Texas, ever”.
Samsung had previously indicated it was exploring sites in Texas, Arizona and New York for a possible new US chip plant. It has had a chip fabrication plant in Austin, Texas, since the late 1990s. But most of its manufacturing centers are in Asia.
The total expected investment of $17 billion, including buildings, property improvements, machinery and equipment, will mark the largest-ever investment made by Samsung in the US. This will also bring Samsung’s total investment in the country to more than $47 billion since beginning operations in 1978. The company now has over 20,000 employees in the US, and the new plant is expected to add nearly 2,000 jobs in the Austin area.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said Governor Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.”
(Except for the headline, this story has not been edited by The Technology Express staff and is published from a syndicated feed)
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