In May this year, Samsung announced that it will construct a new chip factory in the US. The company is planning to invest around $17 billion in the new chip manufacturing plant. But months after this announcement, it has yet to finalize the location for the factory. It appears the wait is almost over now. According to a new report by The Wall Street Journal (via), Samsung has settled on a site in Taylor, Texas.
Citing people familiar with the matter, the publication claims that an announcement could come as early as today. Texas Governor Greg Abbott is reportedly scheduled to make an “economic announcement” at 5 PM local time today where he could talk about the new Samsung chip factory in Taylor.
Samsung seems to have finalized the location for its new chip factory
The tech industry is battling an unprecedented semiconductor chip shortage globally. This has affected the automotive industry the most but is now starting to touch the smartphone industry as well. Amid all this, chip manufacturing giants such as Samsung and TSMC are looking to set up new factories in the US to expand their respective production capacity. The US government has promised billions of dollars in federal funding to the companies that construct manufacturing facilities stateside.
TSMC has already begun the construction of its $12 billion chip factory in Phoenix, Arizona. The Taiwanese giant, which is the world’s largest contract chip manufacturer, plans to make the plant operational by 2024. Samsung, meanwhile, is still undecided on the location, at least that’s what the official status is as of now.
The company has been exploring multiple locations across various US states, including New York, California, Arizona, and Texas, of course. It appears the Korean behemoth has finally reached a decision. This news doesn’t come as a surprise though. For the past couple of months, reports have suggested that Samsung has chosen a site in the city of Taylor, Williamson County, Texas for its new chip plant. Texas government has reportedly offered substantial tax incentives to the company, including up to 90 percent rebate of property taxes as well as many other tax breaks.
Samsung already has a chip factory in Texas, in the Austin suburb. The one it will construct in Taylor will reportedly be bigger though. The upcoming factory will spread across 1,200 acres of land and will create 1,800 new jobs in the state. The company hopes to make the plant ready for production by 2024.