Samsung is looking to build a new chip fabrication plant in the US. The company announced the $17 billion investment plan back in May. However, it has yet to finalize the location for the new factory. A couple of reports last month suggested that the Korean giant is close to reaching a decision but nothing has come out as of now. It appears Samsung might finally reveal where it will construct the new $17 billion chip factory next month.
According to the Korean media, Samsung’s de facto leader Lee Jae-yong could visit the US next month to finalize the deal with local authorities. Kim Ki-nam, a Samsung vice chairman and the head of the company’s device solutions division, said these kinds of decisions require a thorough examination of various factors including infrastructure, locality, personnel, and government incentives.
The Korean firm is currently reviewing these factors and is trying to reach a decision “as soon as possible”. Kim was speaking to reporters at the Korea Electronics Show 2021, which kicked off earlier today in Seoul. The event runs through and will run through October 29th, 2021.
Samsung could construct the new chip factory in Williamson County
The new report suggests the city of Taylor in Williamson County, Texas could emerge as the location for Samsung’s new chip factory in the US. Williamson County has been the frontrunner in this race. The local government has offered an extensive incentives package to the company. Reports suggest the county could rebate Samsung up to 90 percent of property taxes.
There are also other factors that Samsung would be considering. Firstly, it already has a chip plant in the county, in the Austin suburb. Moreover, a few more tech biggies have a presence in Williamson County. It is home to Dell, while Apple is constructing a new campus there.
Samsung is preparing to respond to a US request for chip supply chain information
During the said press briefing, Kim was also asked about the recent US government request to share information about its chip supply chains. The US Department of Commerce has asked all major stakeholders of the chip industry to disclose information on their respective supply chains as the chip shortage hits hard. This will “help improve trust and transparency within the supply chain,” the White House officials said.
However, this request has sparked concerns among the vendors. There are fears that it could compromise sensitive client information and trade secrets. TSMC, the world’s largest contract chipmaker, has already announced that it will not share any sensitive information related to its customers. Kim said Samsung is also “calmly” preparing a response for this US request.