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Samsung to build $17 billion chip plant in Texas

Samsung Electronics plans to build a massive semiconductor manufacturing facility in Taylor, Texas, to address the global shortage of semiconductors. Samsung announced plans to build its largest factory in the U.S. at a cost of $17 billion.

The factory is expected to be operational by the second half of 2024, after breaking ground in the first half of 2022. There will be more than five million square meters of space at the site.

The company says it chose Taylor due to its proximity to its manufacturing site in Austin as well as the local semiconductor industry, stability of the infrastructure, support of local governments, and the community development opportunities in the area. The new facility will create 2,000 jobs once it is fully operational.

This factory will produce products related to mobile, 5G, high-performance computing, and artificial intelligence, according to Samsung.

Credit: Samsung

Samsung Electronics Device Solutions Division Vice Chairman and CEO, Kinam Kim, said, “By expanding our manufacturing capacity, we will be able to better serve our customers and contribute to the stability of the global semiconductor supply chain.”

Samsung is one of the largest semiconductor manufacturers in the world, producing chips for its own devices as well as for other companies like Google and NVIDIA. But it was recently surpassed by Taiwan’s TSMC, which was responsible for the iPhone’s chip manufacturing.

Samsung’s new facility in Texas should help it stay competitive in the advanced semiconductor market, particularly with US-based companies. If the shortage lasts for years, as some predict, it may also alleviate the chip shortage.

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