Samsung Electronics Co. Ltd, (005930:Korea SE), the South Korean giant, is expected to announce on Tuesday a new advanced $17 billion chip-making plant in Texas, United States,. The new plant could generate 1800 jobs, as reported in The Wall Street Journal. According to it, the new plant will be larger in size, roughly 1200 acres, than Samsung’s Austin plant, 30 miles from Taylor.
The best incentives for site selection considered by Samsung was offered in Texas’ Williamson Country, near the city of Taylor, as reported in Reuters. As per WSJ, the city of Taylor offered property tax breaks of over 90% for the first 10 years. It was also considering Arizona and New York for chip plants.
According to the previous filing, chip manufacturing is not expected to start until the end of 2024. However, the company will be producing logic chips to be used in mobile and autonomous vehicles, for its own uses and in other companies in the new plant.
The global chip shortage has led many rivals to come together. Samsung, TSMC, and Intel are joining to expand chip manufacturing in the United States. In order to boost chip manufacturing and research to be ahead of China in advanced technologies and to address shortages for critical industries like autos, US President Joe Biden’s administration had promised billions of dollars in federal funding.
