Samsung plans to construct one more semiconductor manufacturing factory in the US, its third in the country. The new facility is planned in Taylor, Texas, where the company is currently building its second facility, The Wall Street Journal has learned. The Korean firm already operates a chip plant in Austin, Texas.
Samsung may double its chip investment in the US
In 2021, Samsung announced a $17 billion investment to construct a chip factory in Taylor. The factory is expected to be operational later this year. The latest estimates suggest the final cost of the facility will be more than $20 billion, potentially reaching $25 billion. The US government will reportedly support the Korean tech giant with federal funding of about $6 billion under the CHIPS and Science Act.
It appears that Samsung plans to use the grants and subsidies to increase its chip manufacturing capacity in the US. According to the WSJ, the planned second round of investment would bring the total to $44 billion, double what it would invest in the under-construction chip plant in Taylor. As we have seen with the current facility, depending on the market conditions, the total amount could increase as the construction proceeds.
Along with a semiconductor manufacturing facility, Samsung plans to construct a facility for advanced packaging and R&D (research and development). The new report says the initial estimated cost of the manufacturing site is $20 billion, while the packaging facility may cost $4 billion. The company will reportedly hold an event in Taylor next Monday, April 15, to announce its broadened investment plans.
It is a huge win for the US government
If Samsung’s plan materializes, it would massively boost the US semiconductor market. The Biden administration has been encouraging foreign chip companies to invest more in the country to expand their production capacity. That is the very purpose of the CHIPS and Science Act, to lure companies with grand, loans, and funding. The Act offers federal funding of $52.7 billion to chip firms, including $39 billion in direct grants.
TSMC, the world’s largest semiconductor foundry, is also building a new factory stateside. It will reportedly get funding of over $5 billion. American chip giant Intel may receive the biggest chunk of this pool, with rumors of over $10 billion in grants and loans and an additional $3.5 billion in grants for the production of military chips. It is unclear if Samsung will get another round of federal funding for its second chip factory in Taylor.
2024-04-08 15:07:41