According to the Wall Street Journal, Korean tech giant Samsung has picked Texas as the official site of its new chip manufacturing plant and is in talks with the local government about it. This new factory will be approximately 30 miles from Austin, where Samsung already has a facility. The Taylor facility will be larger than Samsung’s Austin facility, with a total area of nearly 5 million square metres.
Along with the company’s latest production line in Pyeongtaek, South Korea, it is planned to serve as a vital location for the company’s global semiconductor manufacturing capability. The plant’s construction is anticipated to begin in 2022, with mass production beginning in 2024.
Greg Abbott, the governor of Texas, tweeted, “Welcome to Texas, Samsung!” while posting photos from an event announcing the plan.
Welcome to Texas, Samsung!
Samsung will build a new semiconductor manufacturing facility in Taylor, Texas.
➡️ $17B capital investment
➡️ Thousands of NEW jobs
The largest foreign direct investment in the state of Texas EVER. pic.twitter.com/a7VhbK3B9Q
— Greg Abbott (@GregAbbott_TX) November 24, 2021
Samsung estimates that the $17 billion investment in the new factory will increase manufacturing of high-performance computing and artificial intelligence gear, as well as create 2,000 high-tech jobs once it is fully operational. This will also be Samsung’s largest-ever investment in the United States, bringing the company’s total investment in the country to more than $47 billion.
Previous rumours have claimed that this facility can create chips as advanced as 3nm, although Samsung has yet to substantiate this claim. The expansion comes as the worldwide chip scarcity continues to wreak havoc on everyone from video game developers to automobile manufacturers.
Samsung also announced that it will provide financial support to the Taylor Independent School District to establish a Samsung Skills Center, which will help students build skills for future vocations while also providing internships and recruiting opportunities.