A $17 billion Samsung chip factory could be coming to Texas

A $17 billion Samsung chip factory could be coming to Texas

Update: The news is main (This post was initially released on Nov. 23, 2021.)

Multiple outlets are reporting that Samsung is preparing to open a brand-new semiconductor factory in Texas– its 2nd in both the state and the nation. Reuters and the Wall Street Journal have actually recognized Taylor, Texas as the possible place for the approximated $17 billion plant, pointing out sources with understanding of the matter.

The WSJ stated in January that Samsung was considering numerous cities throughout the United States to broaden its operations. Taylor, which lies about 30 miles from the business’s existing plant in Austin, used considerable real estate tax breaks in its quote to win business, according to the WSJ

Both news outlets supposedly saw Samsung filings that state the brand-new station would produce 1,800 tasks, focused around producing semiconductor chips. These small chips are necessary to powering a myriad of electrical gadgets, consisting of cars and trucks and mobile phone. A variety of elements, consisting of increasing need and Covid-19- associated concerns, have actually caused an international lack of this vital tech part, a scarcity which specialists forecast will likely continue last well into next year. Increase supply takes a substantial quantity of time and cash– the brand-new Samsung factory, for instance, is not anticipated to really start producing chips up until completion of 2024, Reuters states. This lack has actually left lots of business, such as Apple, with restricted item materials and raised rates heading into the peak vacation shopping season.

[Related: Understanding the global chip shortage, a big crisis involving tiny components]

Currently, most of chip production takes place beyond the United States, focused mainly in Taiwan and Korea. President Biden has actually been pressing to re-up American activity in this sector, and in June, the Senate passed the bipartisan Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act as an element of the United States Innovation and Competition Act, which would develop brand-new rewards for semiconductor plants and innovation advancement in the United States. The expense has yet to move through the House of Representatives. Still, several significant semiconductor producers have actually revealed strategies to enhance their chip-making operations in the nation– this spring, Intel stated it is investing billions in increasing its capability in Arizona, and Taiwan Semiconductor Manufacturing Co likewise has a brand-new factory prepared in Phoenix, with the capacity for more in the future.

Samsung has yet to verify that it is starting a business in Taylor, informing the Wall Street Journal a “decision” has actually not been made. The WSJ states it is anticipated to be a part of an “financial statement” Texas Governor Greg Abbott is making Tuesday night. This would field another huge tech win for Texas, following Tesla’s statement last month that it is moving its head office to the Lone Star State.

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