Samsung to Build $17b Chip Plant in the US

Samsung Electronics has selected Taylor, Texas as the site to build its new semiconductor manufacturing facility. The estimated $17 billion investment, which will improve the supply chain resilience of logic chips, is the largest-ever investment by Samsung in the US.

Samsung states that it remains “committed to supporting customers globally” by making advanced semiconductor fabrication more accessible and meeting the surging demand for leading-edge products. The new facility will manufacture products based on advanced process technologies for application in areas such as mobile, 5G, high-performance computing (HPC) and artificial intelligence (AI).

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future”, said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division. “With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.

“We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the US In addition to our partners in Texas, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the US We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation”.

Groundbreaking will be in the first half of 2022 with the target of having the facility operational in the second half of 2024. The Taylor site will span more than 5 million square metres 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 total expected investment of $17 billion includes buildings, property improvements, machinery and equipment. This will also bring Samsung’s total investment in the US to more than $47 billion since beginning operations in the country in 1978, where the company now has over 20,000 employees.

“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce”, said Governor Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor 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. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse”.

After reviewing locations within the US for a potential manufacturing site, Samsung note that the decision to invest in Taylor was based on multiple factors, including the local semiconductor ecosystem, infrastructure stability, local government support and community development opportunities. In particular, the proximity to Samsung’s current manufacturing site in Austin, about 25 kilometres southwest of Taylor, allows the two locations to share the necessary infrastructure and resources.

This latest expansion of Samsung’s US presence is expected to create over 2,000 high-tech jobs directly and thousands of related jobs once the new facility is in full operation. As part of its co-investment in the community, Samsung will also contribute financial support to create a Samsung Skills Center for the Taylor Independent School District (ISD) to help students develop skills for future careers as well as providing internships and recruiting opportunities.

You can find more information about Samsung and its new $17b semiconductor manufacturing plant in the US on its website.

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