Samsung selects Texas for $17 billion semiconductor factory

New plant to be built in Taylor, just 25km away from Samsung's existing site in Austin

A view of Samsung's semiconductor plant in Austin

Samsung has announced that it will build a new $17 billion semiconductor manufacturing facility in Taylor, Texas, as the company seeks to address the global chip shortage.

Construction on the new facility, which will build chips designed for use in smartphones, 5G, high-performance computing (HPC), and artificial intelligence (AI), is slated to start in the first half of 2022 with the target of having the facility operational in the second half of 2024.

The site will span more than 5 million square meters and is expected to serve as a key location for Samsung's global semiconductor manufacturing capacity along with its latest new production line in Pyeongtaek, South Korea.

The $17 billion investment is the largest ever made by Samsung in the US and includes buildings, property improvements, machinery, and equipment. The plant is expected to create 2,000 jobs in the area with thousands more across the supply chain. Samsung will also contribute cash to create a Samsung Skills Center for the Taylor Independent School District (ISD) to help students develop skills for future careers as well as provide internships and recruiting opportunities.

Samsung said the move was made after reviewing several other sites in the US for a potential manufacturing site. One advantage the Taylor site had was that it sits adjacent to Samsung's current manufacturing site in Austin, about 25 kilometers southwest of Taylor. This will enable the two locations to share infrastructure and resources.

Texas governor Greg Abbott welcomed the news, adding the facility will “bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state's continued exceptionalism in the semiconductor industry.”

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NEC Director Brian Deese and National Security Advisor Jake Sullivan said in a statement that the new factory would “protect our supply chains, revitalizing our manufacturing base, and creating good jobs right here at home”.

US Commerce Secretary Gina Raimondo said in a statement that domestic semiconductor production is critical to preserving and growing US leadership and innovation in one of the most critical industries.

“Semiconductors underpin our entire economy, and the demand for semiconductors will only continue to increase. The U.S. must invest in its domestic manufacturing and R&D capabilities to protect our national security, compete globally, create jobs, and strengthen our domestic supply chain,” she added.

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