Samsung Plows $17 Billion into New Texas Chip Factory Creating Thousands of Jobs
Company chooses sate because of friendly business climate
Tech company Samsung is set to build a $17 billion semiconductor factory in Taylor, Texas, in one of the biggest ever foreign direct investments in the history of the state.
Gov. Greg Abbott (R-TX) said Samsung chose the Lone Star State because of its business-friendly climate:
"The new manufacturing facility will produce advanced logic chips that will power next-generation devices for applications such as mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI).
"The project will create over 2,000 high-tech jobs, thousands of indirect jobs, and a minimum of 6,500 construction jobs. Construction will begin in early 2022, with a target of production start in the second half of 2024.
"The $17 billion in capital investments includes buildings, property improvements, machinery, and equipment.
"A Texas Enterprise Fund (TEF) grant of $27,000,000 has been extended to Samsung for their job creation. In addition, Samsung has been offered a $20,000 Veteran Created Job Bonus."
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” added Governor Abbott.
“Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry.”
Taylor Economic Development Corporation President and CEO Mark Thomas added:
“As one of the largest foreign investment economic development projects in United States history, to say Samsung’s commitment to this project is monumental would be a huge understatement."
The current computer chip shortage is threatening American businesses and the automobile industry.
Tesla CEO Elon Musk said earlier this year that he has “never seen anything like” the semiconductor shortage.
“Our biggest challenge is supply chain, especially microcontroller chips,” Musk said on social media.
The U.S is facing massive strain with its supply chain bottlenecks under Joe Biden.
Dallas Morning News reported:
Korea’s largest company will build the facility in Taylor, about 30 miles from Austin, where Samsung has invested billions in a sprawling complex that already houses more than 3,000 employees and fabricates some of the country’s most sophisticated chips.
Construction is slated to start in the first half of 2022, and the plant will begin production in the second half of 2024.
"Samsung’s new plant will help narrow the gap with TSMC’s production capability by making chips at the clients’ home,” said Kim Sunwoo, an analyst at Meritz Securities.
“As the U.S. prioritizes domestic chip manufacturing, the company will be able to receive various benefits with its production base in the country.”