The South Korean tech giant is planning to build a semiconductor factory in Taylor near Austin, Texas. Samsung plans to construct a $17 billion semiconductor factory as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage.
The company announced its 5 million square meter facility on Tuesday. The purpose of this factory is to boost the production of advanced logic semiconductors. Companies are using semiconductors stated above in phones and computers.
The tech giant expects building work to commence in the first half of the following year. Samsung hopes to have the site in operation by the second half of 2024.
Samsung has operated in the U.S. for several decades. Currently, it employs more than 20,000 people across the country. The latest investment will bring the tech giant’s total investment in the U.S. to more than $47 billion.
Samsung and its rivals
This year, President Joe Biden said domestic semiconductor manufacturing is a priority for his administration. Biden’s administration hopes to fix ongoing chip shortages.
Kinam Kim made a comment regarding a new factory in Texas. He is the vice-chairman and CEO of the Samsung Electronics Device Solutions Division. Kinam Kim said in a statement that the factory would help Samsung better serve its customers’ needs. He also mentioned that he was grateful for support from the Biden administration and partners in Texas.
Samsung is not the only company that decided to build a semiconductor factory. Its two main rivals in the semiconductor manufacturing market are Intel and TSMC.
Intel plans to build two new chip plants. It will spend $20 billion to build two new chip factories in Chandler, Arizona. Presently, Intel operates four factories, called “wafer fabs,” in the U.S. The company also makes chips in Ireland, Israel and has a single fab in China.
TSMC is also willing to expand its operations. The company is building a new factory in Arizona. Taiwan Semiconductor Manufacturing Company (TSMC) was responsible for 24% of the world’s semiconductor output in 2020. According to the company, one year earlier, TSMC accounted for 21% of the world’s semiconductor output.
At the moment, most of the chips come from Taiwan and South Korea. The U.S., as well as Europe, want to start making more of their own chips.