Samsung‘s upcoming chip factory in Taylor, Texas may not be fully operational before 2026. The first phase of the project is reportedly complete and ready for operations. However, we will have to wait longer for the production of chips at the factory. The company plans to produce advanced (4nm and newer) chips at the new semiconductor plant.
Samsung’s new chip factory in Texas may not be ready before 2026
The upcoming chip factory in Williamson County of Texas will be Samsung’s second in the US. The first one is also located in Texas (in Austin) and has been operational since 1996. The Korean firm began construction at the new site in 2021, aiming to make it ready for operation in 2024. However, various factors delayed the project.
In December 2023, the Korean media reported that Samsung now aims to begin operations at the Taylor factory in 2025. The report also revealed that the total estimated cost of the project has gone up from $17 billion to $25 billion. Increased material costs, construction costs, and other overheads significantly added to the bill.
While Samsung hasn’t faced any other major construction setback in recent months, a new report says the site won’t be fully operational before 2026. The construction work may be completed sometime next year, but the company plans to start production of chips the following year. Perhaps it will take time to install the chip equipment and other accessories and make everything ready for mass production.
Interestingly, a Williamson County Judge told county commissioners in February that manufacturing work at the new factory will begin as early as July 1, 2024. Judge Bill Gravel allegedly learned about the date from Samsung’s chief financial officer at a semiconductor conference in South Korea. Gravell even said that construction crews have started pouring the foundation for production equipment.
The latest report suggests Gravel was referring to the first phase of the project, which should be fully operational anytime now. This phase likely doesn’t involve the final production lines. Since a chip factory requires clean rooms and many other facilities, Samsung is moving with the construction phase-by-phase. It will take the company another year and a half to complete construction at the site.
Samsung is building another chip plant in the US
Samsung may still be constructing its second chip factory in the US, but the company has already announced a third one. It will also be located in Taylor, Texas. The estimated cost of the two sites could come in at around $44 billion, though it could increase as the construction progresses. The new project also includes an R&D (research and development) center and an advanced packaging facility.
The Korean firm is building these factories to expand its production capacity in the US, something the Joe Biden administration desperately wants to do to reduce reliance on Taiwan amid invasion threats from China (TSMC, the world’s largest semiconductor foundry with around 60% market share, mostly produces chips in its home country). TSMC and Intel are also building new chip factories in the US.
The US government has awarded these companies with massive grants and subsidies for their commitment to the US chip industry. Samsung received $6.4 billion, TSMC received $6.6 billion, and Intel received $8.5 billion. Samsung’s factories will reportedly create 17,000 construction jobs and 4,500 manufacturing jobs in Texas. The Texas Department of Transportation recently opened a new four-lane highway called Samsung Highway to improve transportation between Samsung’s Taylor and Austin factories.
2024-06-21 15:10:41