Samsung has chosen a location near Taylor, Texas, for its $17 billion (£12.7 billion) computer chip factory, in the midst of a worldwide semiconductor shortage.
Samsung will build $17B chip factory in Texas: biggest-ever investment in the United States for Samsung
It’s the biggest-ever investment in the United States for South Korea’s technology behemoth.
Construction on the plant is expected to start early next year, with 2,000 technology sector employment expected to be created.
Samsung, like several of its competitors, is rushing to increase microchip production in the United States to address supply chain concerns.
“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.
It comes as US President Joe Biden has been pushing chip giants to increase their production in the US.
White House officials said the new facility would help “protect our supply chains, revitalize our manufacturing base and create good jobs.”
“Increasing domestic production of semiconductor chips is critical for our national and economic security,”
-US Commerce Secretary Gina Raimondo
Samsung was welcomed to Texas with a tweet from the Republican governor, Greg Abbott: “Welcome to Texas, Samsung!” After posting photographs of an event announcing the plan, he added.
Welcome to Texas, Samsung!
Samsung will build a new semiconductor manufacturing facility in Taylor, Texas.
➡️ $17B capital investment
➡️ Thousands of NEW jobs
The largest foreign direct investment in the state of Texas EVER. pic.twitter.com/a7VhbK3B9Q
— Greg Abbott (@GregAbbott_TX) November 24, 2021
In addition, the governor’s office stated that the business would receive a $27 million grant for creating jobs in the state.
Variety of applications are coming with the new investment
The new facility will produce chips for a variety of applications, including mobile, 5G, high-performance computing, and artificial intelligence.
Samsung is a worldwide chipmaker with more than 20,000 workers in the US.
The corporation added that the most recent declaration extends its overall investment in the world’s largest economy to $47 billion.