Yahoo Finance Samsung to Spend $17 Billion on a New Chip Plant in Texas
Tech giant Samsung has concluded plans to build a semiconductor factory in Texas over the next few years.
Samsung’s New Chip Plant Will be in Taylor
South Korean tech conglomerate, Samsung, has announced earlier today that it will build a semiconductor factory in Taylor, near Austin, Texas. The plant will be built over the next three years as Samsung looks to increase its effort in manufacturing chips and to address the current global chip shortage.
The company announced that the plant would be a 5 square meter facility, and it will aim to boost the production of advanced logic semiconductors, used mostly in smartphones and computers. This latest development doesn’t come as a surprise as Samsung, like other major chip manufacturers, needs to boost its capacity.
There is currently a global chip shortage, which has affected numerous industries, including smartphones, computers, automobiles and more. Samsung said work is expected to commence in the first half of 2022, and it intends to start operating by the second half of 2024.
The $17 billion allocated to the plant is Samsung’s largest investment in the United States to date. The amount includes buildings, property improvements, machinery and equipment. Samsung has been planning this investment for the past few months.
Samsung Continues to Expand in the United States
The South Korean tech giant has been operating in the United States since 1978 and currently employs more than 20,000 people in the country. Its latest investment brings its total investment in the United States to more than $47 billion, the company added.
In addition to Samsung, other leading semiconductor manufacturers, including Intel, Nvidia, Qualcomm and AMD, could boost their chip production capacity over the coming years after President Joe Biden said earlier this year that domestic semiconductor manufacturing is a priority for his administration.
Kinam Kim, vice chairman and CEO of the Samsung Electronics Device Solutions Division, pointed out that the company is optimistic that the new facility will help Samsung to better serve the needs of its customers and boost the global semiconductor supply chain.
This article was originally posted on FX Empire
