Seoul, Nov 24, : Samsung Electronics announced Wednesday that it has chosen Taylor, Texas, USA, to build its $17 billion chip manufacturing plant.This is in response to a global shortage of chips. The decision was made five months after the tech giant had announced a plan for a second, next generation chip plant in the United States.This decision came as global automotive and consumer electronics companies were forced to reduce their production due to the chip supply crunch.
Samsung stated that it had considered many factors, including the local semiconductor ecosystem, infrastructure stability and local government support, as well as community development opportunities.
It also said that Taylor is close to Austin’s current manufacturing site, which is about 25 km southwest of Taylor.
This will allow the two locations to share the necessary infrastructures and resources, Yonhap news agency reports.
This move will help Samsung lay the foundation for a new chapter in its future, said Kim Ki-nam (Vice Chairman and CEO of Samsung’s device solutions division).
He stated that “With more manufacturing capacity, we can better serve our customers and contribute towards the stability of global semiconductor supply chains.”
Kim stated that the new investment will also create “more jobs” in local communities and help “the training of talent development of local communities.” Kim spoke as Samsung celebrates 25 years of semiconductor manufacturing here in the U.S.
According to the Texas Governor’s office, it will be the largest foreign direct investments in Texas history.Greg Abbott.
Abbott stated that Samsung’s new facility will provide “countless opportunities for hardworking Central Texans, their families, and will play a major part in our state’s continued exceptionalism within the semiconductor industry.”
Due to its generous tax incentives packages of millions of dollars, it was widely expected that the world’s largest manufacturer of memory chips would build the new Taylor plant.
According to Samsung, construction will begin in the first half next year and mass production will begin in 2024.
Samsung’s Austin plant is also known as Line S2.It manufactures products such as radio frequency integrated circuits and display driver integrated circuits.Solid state drive controllers can also be used to control image sensors.
Other microprocessors that use nodes ranging from 14 nanometers up to 65 nanometers are also manufactured at Line S2.
Lee Jae-yong (Vice Chairman of Samsung Electronics) met with key U.S.officials, business partners, and Microsoft CEO Satya Nella to discuss chip shortages, and other business issues, during his recent trip to the U.S.
The tech giant joined a growing list of global semiconductor companies that are rushing to increase their capacity to meet growing demand with the latest decision.
Intel broke ground in Arizona on two plants in September.It is widely expected that Intel will announce the location of a planned manufacturing campus by year’s end.Taiwan Semiconductor Manufacturing Co.is currently building a plant at Arizona and is rumored to be looking into building more in the U.S.
Samsung has doubled down on contract chip manufacturing by building a new plant on more than 5,000,000 square meters of land in the US.
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