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Samsung Electronics has named Taylor in Texas as a $ 17bn US chipmaker as South Korea’s technical team responds to pressure from Biden officials to expand semiconductor production in the US.
The new plant will be Samsung’s state-of-the-art manufacturing facility and aims to help the world’s largest commemorative machine maker integrate with the Taiwanese TSMC in the first phase, a lucrative market for memory chips.
Washington has been urging technology companies to produce more crops in the US in the wake of the global war that has erupted over a long-term decline that has affected many industries ranging from automobiles to home appliances.
Samsung said the $ 17bn plant will showcase its largest US investment as well as the largest foreign investment in Texas. It would help to promote the production of high-tech chips for mobile phones, high-performance computers, and smart design.
The plant, which will create more than 2,000 high-rise jobs, will be operational in the second half of 2024 when construction begins in the first half of next year. “With more manufacturing capacity, we are able to meet the needs of our customers and support the stability of semiconductor supply systems around the world,” said Kinam Kim, vice president of Samsung.
Under pressure from U.S. officials who see semiconductors as a key component of the country’s technical competition with China, Intel smashed two crops in Arizona in September as TSMC built a $ 12bn plant in the same state.
Samsung already owns a plant in Austin, Texas, where production was halted for the first quarter due to a fifth hurricane that caused power outages, costing $ 254m- $ 339m.
The upgrades showed the need for a stable solution for high-end chip factories but Samsung chose Taylor, 25km northeast of Austin, as the location of its second plant because it provided significant tax incentives, according to experts.
“Samsung’s idea of acquiring their semiconductor manufacturing facility in Taylor has been the most important and important economic development in the local economy since the International & Great Northern Railroad was established here in the 1870s,” said Taylor mayor Brandt Rydell.
The announcement was made as if Samsung CEO Lee Jae-yong returned from the US – his first foreign trip since his release from prison in August. He met with White House officials and lawmakers to discuss chip board problems and delivery issues. The Senate in June passed a resolution granting new chipmaking plants and $ 52bn in aid this year, though the House has not considered it.
Gina Raimondo, trade secretary, said: “Manufacturing machinery is essential to maintaining and developing US leadership and expertise in one of our most challenging industries.”
Samsung’s plan comes as the US, China and Europe are scrambling to raise funds to reduce reliance on chips for overseas computers. Most semiconductors are manufactured in South Korea, Taiwan and China, while the US accounts for only 12 percent of the world’s total.
“The new plant will enable Samsung to reduce its cost difference with TSMC in manufacturing products and reduce the risks that can arise from trade barriers by increasing production,” said Kim Young-woo, a SK Securities specialist in Seoul. “It will also satisfy US politicians as they have done well to persuade me to make a high-quality chip.”
Additional reports of Justin Jacobs in Houston and Demetri Sevastopulo in Washington
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