Samsung To Construct $17 Billion Chip Manufacturing facility In Texas, Marking Largest Ever International Funding Into The State
By: Bradley William
Tags: Semiconductors, Technology, Manufacturing, Samsung, USA

Samsung To Construct $17 Billion Chip Manufacturing facility In Texas, Marking Largest Ever International Funding Into The State Bradley William Nov 24, 2021·3 min read

Samsung will construct a $17 billion semiconductor manufacturing facility in Taylor, Texas — marking the most important overseas direct funding within the state’s historical past.

The funding comes as a world pc chip scarcity threatens American companies, particularly within the vehicle business.

A from the workplace of Gov. Greg Abbott (R-TX) says that Samsung selected the Lone Star State on account of its business-friendly local weather:

The brand new manufacturing facility will produce superior logic chips that may energy next-generation gadgets for purposes resembling cellular, 5G, high-performance computing (HPC), and synthetic intelligence (AI). The challenge will create over 2,000 high-tech jobs, hundreds of oblique jobs, and a minimal of 6,500 development jobs. Development will start in early 2022 with a goal of manufacturing begin within the second half of 2024. The $17 billion in capital investments consists of buildings, property enhancements, equipment, and tools. A Texas Enterprise Fund (TEF) grant of $27,000,000 has been prolonged to Samsung for his or her job creation. As well as, Samsung has been provided a $20,000 Veteran Created Job Bonus.

“Firms like Samsung proceed to put money into Texas due to our world-class enterprise local weather and distinctive workforce,” stated Governor Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor will carry numerous alternatives for hardworking Central Texans and their households and can play a serious position in our state’s continued exceptionalism within the semiconductor business.”

“As one of many largest overseas funding financial growth tasks in United States historical past, to say Samsung’s dedication to this challenge is monumental can be an enormous understatement,” added Taylor Financial Improvement Company President and CEO Mark Thomas.

As The Every day Wire reported final week, provide chain bottlenecks are limiting the supply of semiconductors and different key inputs for American corporations. Ford struck a strategic settlement with GlobalFoundries to develop chips, whereas Common Motors is likewise pursuing relationships with producers.

Certainly, The Wall Street Journal experiences that corporations throughout the globe are racing to supply extra semiconductors:

Samsung’s doubling down on Texas the place it already has a footprint comes amid a 12 months of historic spending for the semiconductor business, spurred by authorities incentives searching for to draw native manufacturing. A world chip scarcity has undercut many industries from smartphones and residential home equipment to automobiles. Samsung, the world’s largest semiconductor maker by income, plans to speculate greater than $205 billion over the following three years, with chip-making a precedence. Taiwan Semiconductor Manufacturing Co. has earmarked greater than $100 billion over the following three years to construct new chip factories. Intel Corp. has additionally unveiled greater than $100 billion price of semiconductor manufacturing facility investments plans within the U.S. and Europe over the approaching decade.

Tesla CEO Elon Musk stated earlier this 12 months that he has “by no means seen something like” the semiconductor scarcity.

“Our largest problem is provide chain, particularly microcontroller chips,” Musk stated on social media, evaluating his firm’s determination to “overorder” varied merchandise to the “rest room paper scarcity” that occurred on the outbreak of COVID-19 in the US.

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