Samsung Electronics announced today that it has selected a site in Taylor, Texas to build a new wafer semiconductor manufacturing facility that is expected to produce advanced logic devices.
The estimated $ 17 billion investment, which will be Samsung’s largest investment in the United States, is expected to create around 2,000 new jobs directly and thousands of related jobs once the new facility is fully operational. The funding will bring Samsung’s total investment in the United States to more than $ 47 billion since it began operations in the United States in 1978.
The Taylor site, about 25 km from Samsung’s current manufacturing site in Austin, is expected to serve as a key site for Samsung’s global semiconductor manufacturing capacity, with its latest new production line in Pyeongtaek, Korea. South.
The new facility will manufacture products based on advanced process technologies such as mobile, 5G, high performance computing (HPC) and artificial intelligence (AI).
Samsung’s move comes amid a global chip shortage that has plagued the industries of automobiles to electronics.
The company said it remains committed to supporting customers around the world by making advanced semiconductor manufacturing more accessible and meeting growing demand for semiconductor products.
Samsung will begin construction of the Taylor site, which will cover more than 5 million square meters, in the first quarter of 2022, with a target of operational production in the second half of 2024.
“As we add a new facility to Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, vice president and CEO of the device solutions division at Samsung Electronics. “With greater manufacturing capacity, we will be able to better meet the needs of our customers and contribute to the stability of the global semiconductor supply chain. We’re also proud to bring more jobs and support training and talent development for local communities as Samsung celebrates 25 years of semiconductor manufacturing in the United States.
After reviewing several sites in the United States for a potential manufacturing plant, the decision to invest in Taylor was based on several factors, including the local semiconductor ecosystem, infrastructure stability, local government support, and community development opportunities.
Based on media reports, Samsung, which evaluated other locations such as Arizona, New York and South Korea for the new chip factory, chose Williamson County in Texas because it offered better fiscal policy. In July, Samsung Electronics applied for tax relief (from the Taylor Independent School District) to build a chip manufacturing plant in Taylor, Texas, according to A file submitted to Texas authorities in July.
“This [Samsung] is looking for a strong public partner to support the project through financial and other incentives (eg infrastructure and assistance to utilities). As part of the project, the company is seeking rebates under Chapters 380 and 381 of assistance from the Texas Enterprise Fund. In addition, the company is also pursuing incentives related to certain infrastructure and utility improvements, tariff reductions and other non-monetary benefits to support the construction and operation of the proposed project, ”according to the document. .
Samsung will also provide financial support for the creation of a Samsung Competence Center for the Taylor Independent School District (ISD) to help students develop their future professional skills and provide internships and recruitment opportunities.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” Governor Abbott said. “Samsung’s new semiconductor manufacturing facility in Taylor will provide countless opportunities for hard-working Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. conductors. “
Samsung Group de facto leader Jay Y. Lee, on a visit to North America last week, met with U.S. government officials in Washington, DC to discuss the second chip factory and the supply chain in semiconductors. Lee also met with other tech company executives, including Microsoft CEO Satya Nadella, and executives from Moderna and Verizon Wireless, to strengthen their business ties.
Intel recently opened two new chip manufacturing plants in Arizona. At the same time, TSMC began building a $ 12 billion chip factory in Arizona and announced plans to build the first chip factory in Japan in October. Texas Instruments also unveiled its investment plan for four new semiconductor manufacturing plants in Sherman, Texas.