technology

Samsung to build a new $17 billion advanced chip plant in Texas

Samsung to build a new $17 billion advanced chip plant in Texas
Samsung to build a new $17 billion advanced chip plant in Texas

South Korean tech giant Samsung has officially announced that a new chip-manufacturing plant, estimated to cost around $17 billion, will be set up in Texas, USA. It is reported that the new advanced facility would create almost 1,800 jobs.

The new facility will be built in Taylor, a city roughly 30 miles from Austin, Texas, where Samsung already has an existing unit. The site for the semiconductor plant is estimated to be around 1,200 acres in size, making it larger than its Austin counterpart.

Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solution, stated that by increasing its manufacturing capacity, the company will be able to serve its customers’ needs better while helping to stabilize the semiconductor global supply chain.

Kim added that that the company is grateful to its partners in Texas as well as to the Biden Administration for creating a supportive environment in the US for companies like Samsung, where they can work on expanding leading-edge semiconductor manufacturing. The CEO also thanked the collective support of the administration and the Congress for introducing federal incentives for chip production and innovation.

The development comes as the world suffers from an acute semiconductor shortage that has caused problems for several businesses ranging from gaming console makers to car manufacturers.

Samsung will begin construction for the Taylor site starting next year, with hopes to get the chips rolling off conveyor belts by 2024. The company is also expected to eventually produce processors in the new plant for its own use as well.

It is reported that the city had offered significant incentives to Samsung to get it to select Taylor as the location for its new plant, including an unprecedented 90% property tax breaks for its first decade.

As per reports, it is suggested that Samsung’s new plant can produce chips that are as advanced as 3nm and will be manufacturing them for other companies as well, like it previously had for companies like Nvidia and Qualcomm. 

The announcement comes as the Biden administration attempts to consolidate US chip production to dampen the risk of supply chain disruptions and reverse the country’s declining share in manufacturing over the recent years.

The United States Senate recently approved more than $52 billion in the form of subsidies for new chipmaking plants.

Source credit: https://www.theverge.com/2021/11/23/22245325/samsung-building-chipmaking-fab-texas-taylor

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.