Samsung Still Undecided On Where To Build Its New Chip Plant In The US

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Samsung is considering setting up a new semiconductor chip manufacturing plant in the US. The company is said to announce these investment plans over the next couple of weeks. However, it appears the company has yet to decide where to locate the new $17 billion production facility. It has a choice between three states – Texas, Arizona, and New York – but is undecided on it.

The South Korean behemoth already operates a chip manufacturing plant in Austin, Texas. There are indications that the company’s next big investment in the US would come in the capital city of Texas as well. That would be a logical move, as Samsung’s current manufacturing facility in Austin has been operational since 1997 and has an advantage in terms of parts and raw materials supply. The plant also has an airport nearby, allowing for easy transportation.

However, these are not enough to convince the Korean firm to invest more in Austin. The company is reportedly negotiating with the local government for $805.47 million in incentives over the next 20 years. In the meantime, Arizona and New York are trying hard to attract investments from Samsung.


Time is running out for Samsung to decide on its new chip plant location

According to a Business Korea report, Arizona is emerging as a strong candidate for Samsung’s next wave of investment. The state is reportedly offering up to $9,000 in tax credits for every job created over the next three years. Moreover, Phoenix of Arizona is also offering over $900 million in incentives, the report says.

Samsung is reportedly seeing two sites in Arizona with business facilities of Goodyear and Queen Creek, respectively. The state has already attracted big investments from global semiconductor giants TSMC ($12 billion) and Intel ($20 billion) for setting up new manufacturing plants in recent times.

New York, on the other hand, is promising Samsung $900 million in incentives, including tax cuts and job subsidies. It is apparently the largest-ever incentive amount in New York State’s history.


While Arizona and New York have proposed strong deals to Samsung, the company seemingly wants to build its new chip plant in Austin. Amid all this, the Korean firm is running out of time to reach a decision. US president Joe Biden recently held a meeting with the semiconductor industry’s biggest stakeholders at the White House to discuss the ongoing global chip shortage, including Samsung. He urged foreign chipmakers to expand their production capacity in the US.

South Korean President Moon Jae-in will reportedly have a meeting with Biden regarding the current chip situation. Reports suggest Samsung will announce its investment plans ahead of that high-profile meeting. It would be interesting to see which location the company picks – Texas, Arizona, or New York.