- Samsung has chosen a location near Taylor, Texas, for its new $17 billion (£12.7 billion) computer chip factory due to a global semiconductor shortage. This is the South Korean electronics giant’s most significant investment in the US to date.
The plant is expected to create 2,000 jobs in the technology sector; construction will begin early next year. Like some of its competitors, Samsung is vying to expand chip production in the US to address supply chain issues.
“With more manufacturing capabilities, we will be able to serve the needs of our customers better. And contribute to the stability of the global semiconductor supply chain. Said Kinam Kim, CEO of Samsung Electronic Devices Solutions. At that time, US President Joe Biden urged the chip giant to increase production in the US.
White House officials said the new facility would help “protect our supply chain, revitalize our manufacturing base, and create good jobs.” “Increasing domestic production of semiconductor chips is significant for our national security and economy,” said Trade Minister Gina Raimondo. R]epublican Texas Governor Greg Abbott tweeted, “Welcome to Texas Samsung!”
As he posted photos from the event to announce the plans.
Separately, a statement from the governor’s office said the company would receive a $27 million grant to help create jobs in the state. Chips manufactured at the new facility will be used in several technologies, including mobile communications, 5G. High-performance computing, and artificial intelligence.
Samsung is one of the largest chip manufacturers globally, with more than 20,000 employees in the United States. The company said the latest announcement increased total investment in the world’s largest economy to $47 billion.
The global chip shortage is causing significant disruption for manufacturers, from automakers having to halt production to Apple’s warning that iPhone shipments will be delayed. Taiwanese chipmaker TSMC announced a $100 billion investment in Arizona earlier this year. While US semiconductor maker GlobalFoundries said it would increase its investment in upstate New York.