Samsung has announced plans to invest $17 billion in building a new chip factory in Texas, in a bid to address the ongoing semiconductor crisis. The South Korean company aims to develop advanced and high-end chips for smartphones, 5G networks, and artificial intelligence applications. According to The Wall Street Journal, the construction of the factory is set to begin in 2022, with operations expected to commence in the second half of 2024.
The chosen location for Samsung’s new factory is Taylor, Texas, due to the city’s attractive tax breaks and incentives, as well as its ability to handle power outages and provide uninterrupted electricity to critical facilities. The decision to establish this facility comes as the U.S. government takes steps to boost semiconductor production in response to the global chip shortage caused by plant closures and increased demand during the pandemic.
Kim Ki-nam, CEO of Samsung’s Electronic Device Solutions Division, highlighted that the increased manufacturing capacity will enable the company to better serve customer needs and contribute to the stability of the global semiconductor supply chain. In addition, this investment will create job opportunities and support training and talent development in local communities. Samsung’s move to build a new chip factory in Texas marks the company’s 25th anniversary of semiconductor manufacturing in the United States.
The chip shortage has significantly impacted various industries, including technology and automotive. In response, major manufacturers like General Motors and Ford have had to reduce or suspend production at their plants this year due to supply restrictions. As a result, governments and companies worldwide are taking measures to address the semiconductor scarcity and ensure a more resilient supply chain.
Samsung’s investment in the Texas chip factory aligns with the broader efforts to strengthen semiconductor production. The company’s commitment to expanding its manufacturing capabilities reflects its determination to meet the growing demand for chips while addressing the challenges created by the ongoing crisis.
In summary, Samsung’s investment of $17 billion in a new chip factory in Texas will boost semiconductor supply and help alleviate the global chip shortage. The company’s decision to build this facility is in line with efforts by the U.S. government and other players to enhance semiconductor production. By expanding its manufacturing capacity, Samsung aims to better serve customers, contribute to the stability of the global supply chain, create job opportunities, and support local communities.
