Samsung building $17bn chip making plant in Texas

Samsung building $17bn chip manufacturing plant in Texas

LONDON, UK: Samsung Electronics has reached an agreement to construct a new fabrication plant in Taylor, Texas, USA, a bourse filing noted on Wednesday.

Samsung plans to expand its production capacity of semiconductors through this investment to address growing demand for core, cutting-edge system semiconductors as well as contribute to the stabilization of the global semiconductor supply chain.

The plant would create 2,000 high-tech jobs and manufacture advanced chips for functions such as mobile, 5G, high-performance computing and artificial intelligence.

Construction will begin in the first half of 2022, and mass production is slated to start in in the second half of 2024. The total investment, including construction and equipment, is estimated at $17 billion.

“With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain,” Kinam Kim, chief executive of Samsung electronics device solutions said.

The plant is expected to be operational by the second half of 2024.

In August this year, Samsung announced to invest $206 billion in the next three years to expand its footprint in biopharmaceuticals, artificial intelligence, semiconductors and robotics, Samsung Electronics said.

The investment through 2023 will help strengthen the group’s global standing in key industries such as chip-making, while allowing it to seek growth opportunities in new areas such as robotics and next-generation telecommunications.

Samsung Electronics, the world’s largest memory chip maker, said the group plans to solidify technology and market leadership through mergers and acquisitions. It did not provide a breakdown of the investment figures.

The plan is 30% larger than Samsung’s previous three-year strategy floated in 2018. The group decided to increase investment to retain technological leadership, especially during “emergency situations” at home and abroad.

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