Samsung Electronics introduced at this time it has chosen a website in Taylor, Texas, to construct a brand new semiconductor wafer fabrication plant that’s set to provide superior logic gadgets.
The estimated $17 billion funding, which can mark the biggest funding made by Samsung within the U.S., is predicted to create about 2,000 new jobs instantly and hundreds of associated jobs as soon as the brand new facility is in full operation. The funding will convey Samsung’s complete funding within the U.S. to greater than $47 billion since starting U.S. operations in 1978.
The Taylor website, about 16 miles from Samsung’s present manufacturing website in Austin, is predicted to function a key location for Samsung’s international semiconductor manufacturing capability alongside, with its newest new manufacturing line in Pyeongtaek, South Korea.
The brand new facility will manufacture merchandise based mostly on superior course of applied sciences similar to cellular, 5G, high-performance computing (HPC) and synthetic intelligence (AI).
Samsung’s determination comes amid a worldwide chip scarcity that has undermined industries from cars to electronics.
The corporate stated it stays dedicated to supporting clients globally by making superior semiconductor fabrication extra accessible and assembly surging demand for semiconductor merchandise.
Samsung will begin building on the Taylor website, which can span greater than 5 million sq. meters, within the first quarter of 2022, aiming to have manufacturing up and operating within the second half of 2024.
“As we add a brand new facility in Taylor, Samsung is laying the groundwork for an additional necessary chapter in our future,” stated Kinam Kim, vice chairman and CEO of gadget answer division at Samsung Electronics. “With higher manufacturing capability, we are going to in a position to higher serve the wants of our clients and contribute to the soundness of the worldwide semiconductor provide chain. We’re additionally proud to be bringing extra jobs and supporting the coaching and expertise growth for native communities, as Samsung celebrates 25 years of semiconductor manufacturing within the U.S.”
After reviewing a number of areas throughout the U.S. for a possible manufacturing plant, the choice to spend money on Taylor was based mostly on a number of components, together with the native semiconductor ecosystem, infrastructure stability, native authorities assist and neighborhood growth alternatives.
Primarily based on media stories, Samsung, which evaluated different areas similar to Arizona, New York and South Korea for the brand new chip plant, picked Texas’ Williamson County as a result of it supplied a greater tax coverage. In July, Samsung Electronics utilized for a tax break (from the Taylor Unbiased Faculty District) to construct a chipmaking manufacturing unit in Taylor, Texas, in accordance with a file submitted with Texas authorities in July.
“It [Samsung] seeks a powerful public companion to assist the undertaking via monetary and different incentives (e.g., infrastructure and utility help). In reference to the undertaking, the corporate is in search of rebates beneath Chapter 380 and 381 help from the Texas Enterprise Fund. As well as, the corporate can also be pursuing incentives referring to sure infrastructure and utility enhancements, price reductions, and different non-cash advantages to assist building and operations of the proposed undertaking,” as per the doc.
Samsung can even contribute monetary assist to create a Samsung Abilities Middle for the Taylor Unbiased Faculty District (ISD) to assist college students develop future profession abilities and supply internships and recruiting alternatives.
“Corporations like Samsung proceed to spend money on Texas due to our world-class enterprise local weather and distinctive workforce,” stated Governor Wayne Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor will convey numerous alternatives for hardworking Central Texans and their households and can play a significant function in our state’s continued exceptionalism within the semiconductor trade.”
Samsung Group’s de facto chief Jay Y. Lee, visiting North America final week, met with the U.S. authorities officers in Washington, D.C. to debate the second chip plant and semiconductor provide chain. Lee additionally met with different tech agency leaders, together with Microsoft CEO Satya Nadella and execs at Moderna and Verizon Wi-fi, to strengthen their enterprise ties.
Intel lately broke floor on two new chipmaking crops in Arizona. On the similar time, TSMC began establishing a $12 billion chip manufacturing unit in Arizona and introduced its plan to construct the primary chip plant in Japan in October. Texas Devices additionally unveiled its funding plan for 4 new semiconductor fabrication crops in Sherman, Texas.