Samsung plans to build a $ 17 billion chip factory in Texas

In the context: Demand for semiconductors is growing, and the constant shortage of microcircuits is forcing companies and governments to invest large sums of money in building manufacturing facilities outside Asia. Samsung has big plans to conquer semiconductors and other key industries, and Samsung will spend $ 205 billion on these goals. A portion of that $ 17 billion fund will go towards building a new chip factory in the United States, most likely in one of two Texas cities.

Earlier this week, Reuters reported that Samsung was evaluating two locations in Texas for a new 5nm chip factory after it learned of plans to offer extensive property tax breaks to tech giants looking to relocate their businesses to the region.

One such location is Austin, where one of Samsung’s manufacturing facilities is already located, and the other is Taylor, Williamson County. Williamson County Commissioners, along with Taylor City Council, unanimously supported the proposal, and the owner of the Texas Beer Company has pledged to co-brand Samsung’s Pale Ale beer if the company ever decides to do so.

However, a Samsung spokesman explained that “Samsung has not made any decision regarding the site for potential expansion. All sites are pending and each community is doing due diligence to ensure they are in the best position for this opportunity. The actions of Williamson County and the City of Taylor are part of their due diligence. “

The City of Taylor is undoubtedly excited about the project, as it is expected to create 1,800 jobs for the chip factory, as well as 6,500 to 10,000 construction jobs. The facility will cover over 1,100 acres (4.45 square kilometers), much more than the 350 acres Samsung previously bought for its Austin plant.

However, Taylor and Austin are just two of five potential locations Samsung is considering for what it calls the Star Project internally. Austin is reportedly less attractive to the tech giant after a prolonged power outage in February led to a temporary shutdown of an existing plant there – a $ 350 million loss. Sites in Phoenix and New York are also pending, but less frequently than Austin.

Samsung wants to start building a new chip factory in early 2022 and bring it online by the end of 2024, so it will soon announce its decision on the location of the new factory.

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