Samsung will build a $17 billion semiconductor factory in Texas

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Samsung has committed to build a chip-making factory in Texas, just as the US starts to push for the expansion in semiconductor production within the country. The Korean tech giant will be investing $17 billion into the new facility, which will manufacture high-end and advanced chips for smartphones, 5G and artificial intelligence, among other applications. According to The Wall Street Journal, construction for the factory is scheduled to begin next year, while production within the facility is expected to start in the second half of 2024. 

The US government has been taking steps towards boosting semiconductor production in the US, following the global chip shortage caused by shuttered plants and the high demand for PCs and other devices during the pandemic. This issue continues to have a huge impact across industries — just this year, automakers like GM and Ford had to suspend or cut production in their US plants due to supply constraints. 

Samsung scouted locations in Arizona, New York and Florida for the new project and also considered Austin, where it has an existing factory. It ultimately chose Taylor, Texas for this new facility due to the generous tax breaks and incentives it offered, as well as the city’s capability to do rolling blackouts and providing electricity to certain facilities in the case of power outage. 

Kim Ki-nam, chief executive of the Samsung Electronics Device Solutions Division, said in a statement:

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future. With greater manufacturing capacity, we will 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.”

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