Samsung plans to build semiconductor factory worth $17 bn in Texas

15:52, 24 November 2021
Samsung plans to build semiconductor factory worth $17 bn in Texas Photo: Andrej Sokolow/dpa/Global Look Press

The unit projected to be finished by 2024 is expected to create around 2,000 jobs.

South-Korean titan Samsung announced that it was going to invest $17 bln to erect a semiconductor factory in Taylor, near Austin, Texas.

The decision appears as the semiconductor crisis hit economies and industries worldwide including the automobile branch, phones, electronic devices, and others.

The project scheduled to launch its operation in 2024 is Samsung’s largest investment in the US. It has already been welcomed by Texas Governor Greg Abbott who highlighted that this will also be the biggest investment in the state’s history.

According to the company’s statement, the factory will lay the foundation for its new chapter and create over 2,000 high-tech jobs and thousands of related ones in the state.

“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,” Samsung Electronics vice​ chairman Kinam Kim said.

He has also thanked the White House for making a friendly environment for enterprises like Samsung in the US.

Samsung will manufacture chips to be used in mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI). The territory will take over 5 square km (1235 acres).

The South Korean giant has invested more than $47 bln in the US infrastructure since 1978 and has over 20,000 employees. Its another US chip plant is also located in Austin.

Samsung representatives unveiled that they also considered building a factory in New York or Arizona but chose Texas due to “the local semiconductor ecosystem, infrastructure stability, local government support, and community development opportunities”.

The request for the factory construction was filed in January as the enterprise sought to receive loans of up to $800 mln.