As expected, Samsung picks Texas for its new $17 billion chip plant

South Korean electronic major Samsung today announced that it has chosen Taylor, Texas as the location for its new $17 billion plant to make advanced chips to be used in mobiles, 5G, autonomous vehicles, high-performance computing and artificial intelligence. Samsung said the facility will become operational in the second half of 2024.

The factory will be Samsung's second one in Texas, where it already operates a plant in Austin. The Taylor site, at 5 million square meters, 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.

The US is where Samsung and its archrivals TSMC and Intel are battling it out for chip contract manufacturing. The expansion is expected to address the global semiconductor shortage that is affecting multiple industries.

New facility to create 2000 jobs

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division.

“In addition to our partners in Texas, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the US,” he added.

The total expected investment of $17 billion is the largest-ever investment made by Samsung in the US. This will also bring Samsung’s total investment in the US to more than $47 billion since beginning operations in the country in 1978, where the company now has over 20,000 employees.

Samsung is setting up its second chip plant in Texas, US — (Left to Right) Senator John Cornyn, Governor Greg Abbott, Samsung Electronics Vice Chairman & CEO Kinam Kim. (Image credit: Samsung Electronics)

Samsung said it zeroed in on Taylor after taking into account multiple factors, including the local semiconductor ecosystem, infrastructure stability, local government support and community development opportunities.

The proximity to Samsung’s current manufacturing site in Austin, about 25 kilometers southwest of Taylor, allows the two locations to share the necessary infrastructure and resources.

Samsung will also contribute financial support to create a Samsung Skills Center to help local students develop skills for future careers as well as providing internships and recruiting opportunities.

The new facility will create over 2,000 high-tech jobs directly and thousands of related jobs once it is in full operation.

Samsung is expected to make chips of 5-nanometres or less for companies like Qualcomm at the new facility. An official word on the same is expected soon.