The Strategist

Samsung allocates $17B for new chip factory in US

11/25/2021 - 10:17

Samsung has announced that it will build a new semiconductor plant in the US for $17bn. Earlier, the US Senate approved direct subsidies worth $52bn for the establishment of chip production.

Samsung Electronics will build a new semiconductor plant in Texas for $17bn, the South Korean giant's press office said. "By increasing production capacity, we will be able to better meet the needs of our customers and contribute to the stability of the global semiconductor supply chain," said company vice president Ki-Nam Kim.

Groundbreaking will take place in the first half of 2022 and the facility will be operational in the second half of 2024. Including investments in the new plant ($17 billion), Samsung's total investment in the US, where it has been operating since 1978, will exceed $47 billion.

The city of Taylor, with a population of 16,000, was selected as the site for the new plant, particularly because another Samsung manufacturing facility is located 25 km away in Austin. The proximity of the two facilities will allow them to share infrastructure and resources.

According to the Semiconductor Industry Association of America, the US share in global chipmaking capacity fell from 37% in 1990 to 12% in 2020. The top three in the critical industry for US national security and economic growth are now led by China, Taiwan and South Korea.