South Korean enterprise Samsung Electronics announced today that it would build a new semiconductor manufacturing facility in Taylor, Texas, hoping to inject some produce amidst a global shortage of chips.
“The estimated $17 billion investment in the United States will help boost production of advanced logic semiconductor solutions that power next-generation innovations and technologies,” the company stated. The wafer fabrication plant is expected to create about 2,000 new jobs directly and thousands of related jobs once the new facility is in full operation. The funding will bring Samsung’s total investment in the U.S. to more than $47 billion since beginning U.S. operations in 1978.
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). Samsung remains committed to supporting customers globally by making advanced semiconductor fabrication more accessible and meeting surging demand for leading-edge products.
“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 U.S.,” Kim added.
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 meters 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.
Samsung, one of the largest semiconductor makers in the world, said in August that it plans to invest more than $205 billion in semiconductor, bio, IT and next-generation communication networks industries over the next three years to bolster its global presence.
“After reviewing multiple locations within the U.S. for a potential manufacturing site, 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 kilometers southwest of Taylor, allows the two locations to share the necessary infrastructure and resources,” the company mentioned in its official statement.
Based on media reports, Samsung, which evaluated other locations such as Arizona, New York and South Korea for the new chip plant, picked Texas’ Williamson County because it offered a better tax policy. In July, Samsung Electronics applied for a tax break (from the Taylor Independent School District) to build a chipmaking factory in Taylor, Texas, according to a file submitted with Texas authorities in July.
“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.”
Samsung is also set to contribute financial support to create a Samsung Skills Centre for the Taylor Independent School District (ISD) to help students develop skills for future careers as well as provide internships and recruiting opportunities.