U.S. Semiconductor Projects Progress in New York, Texas & Elsewhere

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Semiconductor construction is on the move across the U.S., with the past few weeks bringing the announcement of an achieved milestone in Micron's Syracuse, New York, construction project, while Samsung Electronics has given the go-ahead for construction of a second fab in Taylor, Texas, to start by the end of this year. Meanwhile, major projects progress in other locations such as Ohio and Arizona.

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An Industry on the Move

U.S. semiconductor construction has steadily been gaining steam after the COVID-19 pandemic brought a chip shortage and a surge in domestic production capacity additions followed, boosted by significant federal grants and loan guarantees. Industrial Info Resources data show more than $133 billion worth of semiconductor construction presently underway in the U.S., and whopping $736.6 billion planned for a future date, although not all of those future projects will move forward as planned.

And the construction seems to keep rolling in. Micron Technology, already underway with one of the U.S.' largest semiconductor projects--the addition of new fabrication facility (fab) at its campus in Boise, Idaho--this month announced the passing of a major milestone at a new fab complex in the Syracuse, New York, area when first concrete for the project was poured. Micron says the initial concrete pour puts the plant ahead of its planned construction schedule and marks the boundary between site preparation, which has been headed up by Rhode Island-based Gilbane, to "vertical construction," which will be led Bechtel.

Micron states that the New York facility "will be the largest semiconductor manufacturing site in U.S. history," with plans to include three more fabs at the site, requiring an estimated $100 billion in total with the fourth and final fab expected to be completed in the late 2030s or early 2040s. Micron's announcement of the project milestone was accompanied by the announcement that it was growing anticipated U.S. investments through 2035 to a whopping $250 billion--right on par with other major chipmakers such as Taiwan Semiconductor Manufacturing Company (TSMC) and to a less extent Intel, which are collectively underway with construction in Ohio and Arizona, respectively, worth more than $50 billion combined.

Future U.S. Semiconductor Construction

But those current projects aren't the only U.S. construction on the books for Micron, TSMC and Intel. Industrial Info Resources show more than $429 billion worth of expansions and additions possible at TSMC's Phoenix site, while Intel could drop around $6 billion to grow its campus in Hillsboro, Oregon. Micron is focusing on its New York and Idaho campuses. All three companies also have capital projects planned or underway outside of the U.S. as well.

Another Major Announcement

At this week's second-quarter earnings conference call, the chief executive of Samsung Electronics announced that construction of a second fab at the company's Taylor, Texas, site would commence before the end of this year. The announcement is in keeping with an Industrial Info Resources' report on the second fab, initially released in early 2022 and consistently updated since to show the project kicking late this year, putting it on track to begin production a few years later. Construction of an initial fab at the site kicked off in 2022, and Samsung executives confirmed the facility was on track to complete construction and start production later this year. Samsung Corporation's own Samsung C&T Engineering & Construction Americas Incorporated will help lead construction with Jacobs providing the major engineering.

Smaller Projects

Several current projects range in investment value from tens of millions to a few billion dollars. The Industrial Info Resources PECWeb database shows two capital projects in the $3 billion-$4 billion range underway in Indiana from SK Hynix America and Peoria, Arizona, from Amkor Technology.

Other smaller projects abound, including an estimated $150 million renovation partially funded by the CHIPS & Science Act that BAE systems is underway with in Nashua, New Hampshire, to quadruple production of its wafers and chips, which are used by the U.S. defense sector. And of course, hundreds of billions of other projects are set for a future date.

Key Takeaways

• This month, Micron announced it had poured the first concrete for its upstate New York fab, while Samsung Electronics said it will commence with construction on a second fab in Taylor, Texas, this year.
• Samsung is wrapping up an initial manufacturing plant in Taylor that is expected to begin production this year, while Micron is investing in its Boise campus in addition to New York.
• Industrial Info Resources is tracking more than $133 billion worth of current U.S. semiconductor construction and another $736 billion in the planning and engineering stages.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).