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Samsung to spend $17 billion to build new chip plant in the US

23 de novembro de 2021 Hi-network.com

One of Samsung's semiconductor plants in Hwaseong, South Korea.

Image: Samsung

Samsung on Wednesday said it would spend an estimated$17 billion in the US to build a new semiconductor manufacturing facility that will produce advanced logic chips.

The new plant, to be built at Taylor, Texas, will manufacture chips based on advanced process technologies for mobile, 5G, AI, and high-performance computing applications, the South Korean tech giant said. The manufacturing capacity from the new facility would contribute to the stability of the global semiconductor supply chain, Samsung vice chairman and CEO of its chip business Kinam Kim said in a statement.

"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," Kim added. 

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"We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation."

Construction of the new plant, which will span over 5 million square meters, will start during the first half of 2022 and Samsung is aiming to start its operations during the second half of 2024.

The estimated$17 billion to build the new facility will be Samsung's single largest investment within the US, the company said. Since Samsung began operations in the US in 1978, the company has spent over$47 billion.

In addition to the new plant, a skills center will also be built in Taylor to help students develop skills and provide recruiting opportunities as part of that investment.  

According to Samsung, it decided to build the plant in Taylor after reviewing various locations across the US due to the local semiconductor ecosystem, infrastructure stability, local government support, and community development opportunities.

The new plant will also be in close proximity to Samsung's existing manufacturing facility in Austin, approximately 25km southwest of Taylor, which will allow the two plants to share necessary infrastructure and resources, the company said.

Samsung said the new facility is expected to create over 2,000 direct new jobs. 

The South Korean tech giant currently has around 20,000 employees in the US.  

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