Tech

Samsung Launches New High-Tech Semiconductor Plant in Texas

Samsung Launches New High-Tech Semiconductor Plant in Texas

Samsung Electronics has announced the construction of its new semiconductor wafer fabrication plant that will develop sophisticated logic devices, in Taylor, Texas.

The $17 billion projects, which is said to be Samsung’s largest investment in the US, is expected to generate nothing less than 4000 jobs both directly and indirectly when the plants become operational.

Along with Samsung’s latest major production line in Pyeongtaek, South Korea, the Taylor site, which is roughly 16 miles from Samsung’s present manufacturing facility in Austin, is planned to serve as a crucial location for Samsung’s global semiconductor manufacturing capacity. The new facility will produce items using sophisticated process technologies like mobile, 5G, HPC, and artificial intelligence (AI).

Samsung intends to commence building on the Taylor facility which will cover over 5 million square meters, in the first quarter of 2022, with manufacturing expected to take off in the second half of 2024.

Samsung’s decision follows a global chip shortage that is wreaking havoc on industries ranging from automobiles to electronics. Stating that it is committed to helping clients throughout the world by making advanced semiconductor production more accessible and addressing the growing demand for semiconductor products.

In a statement, Kinam Kim, vice chairman and CEO of Samsung Electronics’ device solution division said “By building a new facility in Taylor, Samsung is establishing the foundation for a new chapter in our history”. Adding that “We will be able to better service our clients’ needs and contribute to the global semiconductor supply chain’s stability with increased manufacturing capacity. And as we celebrate 25 years of semiconductor production in the United States, we are also happy to be bringing more jobs and supporting local community training and talent development.”

The choice to invest in Taylor was based on several considerations, including the local semiconductor ecosystem, infrastructural stability, local government backing, and community development opportunities, after considering numerous locations in the United States for a potential manufacturing factory.

According to media reports, Samsung chose Texas’ Williamson County over other destinations for the new chip production, including Arizona, New York, and South Korea, because it offered a better tax policy. According to a filing filed with Texas authorities in July, Samsung Electronics sought a tax break from the Taylor Independent School District to develop a chip-making factory in Taylor, Texas.

“The corporation is looking for a strong public partner to help fund and support the project with infrastructure and utility assistance, among other things.” The corporation is requesting refunds from the Texas Enterprise Fund in connection with the project. According to the report “the corporation is also pursuing incentives relating to specific infrastructure and utility enhancements, rate reductions, and other non-cash advantages to assist the proposed project’s construction and operations.”

Samsung will also provide financial support to the Taylor Independent School District (ISD) to establish a Samsung skills Center to help students build future professional skills and supply interns.

Governor Wayne Abbott expressed delight, saying, “Companies like Samsung continue to invest in Texas because of our world-class business climate and excellent workforce.” “Samsung’s new semiconductor production facility in Taylor will provide innumerable opportunities for hardworking Central Texans and their families, and it will help our state maintain its semiconductor sector leadership.”

“We are grateful to the Biden administration, in addition to our Texas partners, for fostering an environment that supports firms like Samsung as we work to increase leading-edge semiconductor manufacturing in the United States,” Kim said.”

About the author

Ajisebutu Doyinsola

Doyinsola Ajisebutu is a journalist and prolific writer who takes a special interest in Finance, Insurance, and the Tech world.