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Samsung to build $17 billion semiconductor manufacturing plant in Texas, the largest Samsung’s investment in the U.S


The news of the chip shortage continues to make the headlines. As the world shut down last year due to the pandemic causing factories around the world to halt production, reduce inventory, and some even close down making the supplies needed for chip manufacturing unavailable for months.

As global economic activities picked up again in 2021, the increased demand for consumer electronics rippled through the global supply chain and disrupted many sectors including the tech and auto industry. The shortage also creates opportunities for semiconductor companies.

Intel, Taiwan TSMC, and South Korea-based Samsung are now investing billions of dollars in new manufacturing plants to address the chip shortage. In March, Intel announced it is spending $20 billion to build two new chip plants in Arizona. TSMC also made a similar billion-dollar investment in Arizona to build a new chip plant. Today, the vast majority of the world’s chips are currently made in Asia, with Taiwan and South Korea being the hotbeds of semiconductor manufacturing activity.

Samsung is now following suit. Yesterday, Samsung announced it is planning to build a $17 billion semiconductor factory in Taylor near Austin, Texas, over the next three years as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage. It is the largest foreign direct investment in Texas and the largest investment Samsung has ever made in the U.S. The figure includes buildings, property improvements, machinery, and equipment.

Texas Governor Greg Abbott said the factory will bring opportunities for Central Texans and their families. In a tweet, Governor Abbott said:

“Samsung will build a new $17 billion semiconductor manufacturing facility in Taylor — the largest foreign direct investment in Texas on record!”

The 5 million square meter facility will aim to help boost the production of advanced logic semiconductors, which are used in phones and computers. Samsung said it expects building work to commence in the first half of 2022 and it hopes to have the site in operation by the second half of 2024.

Kinam Kim, vice chairman and CEO of the Samsung Electronics Device Solutions Division, said in a statement that the factory will help Samsung to better serve the needs of its customers and “contribute to the stability of the global semiconductor supply chain.”






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