San Francisco/Seoul : , Samsung Electronics announced Wednesday that it has chosen Taylor, Texas, USA, to build its $17 billion Chip manufacturing plant.This move was made in response to a global shortage of Chip production.Five months ago, the tech giant had announced a plan for a second, next generation Chip plant in the US.This decision was made as global automotive and consumer electronics companies were forced to reduce their production due to the Chip supply crunch.
Samsung Electronics stated in a regulatory filing that it had completed consultations with Taylor, USA in relation to the investment in the new foundry line.
It stated that the investment would allow them to increase their Chip production capabilities to meet rising demand for cutting-edge and key logic Chip technology and stabilize the global Chip supply chain.
According to Yonhap News Agency, it was widely expected that Taylor would be home to the world’s largest memory Chips maker due to its generous tax incentives worth millions of dollars.
Taylor is about 40 minutes drive northeast of Austin, where you will find the Samsung Electronics semiconductor plant.
According to Samsung, construction will begin in the first quarter of 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 was recently appointed vice chairman of Samsung Electronics.He met with key US business partners and Microsoft CEO Satya Nadella, as well as Moderna chairman Noubar Afeyan to discuss issues such as Chip shortages and other business concerns during his recent trip to the US.
The tech giant joined a growing list of global semiconductor companies that are rushing to increase their capacity to meet growing demand.
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 at building more in the US.
Samsung has built a new US fabrication plant, doubling down on contract Chips manufacturing.
Apple and Google are among the many tech companies that have started to develop their own Chips.
They have also acquired fabless companies to gain competitive advantage in strategic materials.This is a significant shift that gives more importance to external findries.
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