Samsung's New Texas Semiconductor Plant Brings Investments in U.S. to $47 Billion

Researched by Industrial Info Resources (Sugar Land, Texas)--Samsung Electronics (Seoul, South Korea) plans to build a new semiconductor-manufacturing facility in Taylor, Texas. The project, which is estimated to cost $17 billion, its designed to boost production of advanced semiconductors, which are in high demand amid a global shortage.

According to a press release from Samsung, groundbreaking is scheduled for the first half of 2022, with operations expected to begin in the second half of 2024. The Taylor site will span more than 5 million square meters and is expected to serve as a key location for Samsung's global semiconductor manufacturing capacity, along with its latest new production line in Pyeongtaek, South Korea, according to the company. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more in a detailed project report.

The plant will produce advanced logic chips that will power devices for applications such as mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI), according to a release from Texas Governor Greg Abbott's office, which added the project will directly create 2,000 high-tech jobs, and a minimum of 6,500 construction jobs.

The project will benefit from a Texas Enterprise Fund (TEF) grant of $27 million, Abbott's office said.

Industrial Info is tracking more than $28 billion worth of Samsung projects in Texas, including a semiconductor wafer-fabricating plant and a solar power plant in Paris. Subscribers can click here for a full list of project reports.

Samsung said the Taylor project will be its largest-ever investment in the U.S., and it will bring the company's total investment in the U.S. to more than $47 billion.

As the global semiconductor chip shortage has slowed automobile production and affected the PC and other electronic device markets, the U.S. government has taken measures to increase domestic chip production, which would allow the US to have a reliable supply and decrease reliance on imports.

The planned investment "is the result of sustained work by the [Biden] administration, including engagement with Samsung and the president's meeting with [President Moon Jae-in] of the Republic of Korea in May, where the two leaders announced they would facilitate mutual and complementary investments in semiconductors," according to a statement last week by U.S. National Economic Council Director Brian Deese and National Security Advisor Jake Sullivan.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.