Samsung has committed to building a chip-making factory in Texas, just as the United States begins to push for increased domestic semiconductor production.
The Korean tech giant will invest $17 billion in the new facility, which will produce high-end and advanced chips for smartphones, 5G networks, and artificial intelligence, among other applications.
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According to The Wall Street Journal, construction on the factory is set to begin next year, with production beginning in the second half of 2024.
Following the global chip shortage caused by shuttered plants and the high demand for PCs and other devices during the pandemic, the US government has taken steps to increase semiconductor production in the US.
This issue is still having a significant impact across industries; just this year, automakers such as GM and Ford were forced to suspend or reduce production in their US plants due to supply constraints.
Samsung looked into locations in Arizona, New York, and Florida for the new project, as well as Austin, where it already has a factory.
It ultimately chose Taylor, Texas for this new facility because of the generous tax breaks and incentives it provided, as well as the city’s ability to perform rolling blackouts and provide electricity to specific facilities in the event of a power outage.
Kim Ki-nam, chief executive of the Samsung Electronics Device Solutions Division, said in a statement:
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“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future. 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.
“We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the US.”