Samsung has announced its plans to build a $17bnsemiconductor factory outside Austin, Texas amid a global shortage of semiconductors used in automobiles, laptops, phones, and other electronic devices.
This is considered the South Korean company's biggest investment in the United States, and it said it would start building the plant in 2022 and aims to start operations in the second half of 2024.
The new factory will manufacture high-tech chips used for 5G mobile communications, advanced computing, and artificial intelligence, and also improve supply chain resilience, the electronics giant stated.
The company chooses the location after considering sites in Arizona and New York for the factory.
Samsung vice chairman, Kinam Kim, said the site proved more favourable due to a number of factors, including government incentives, the “readiness and stability” of local infrastructure and its proximity to the company’s only other plant in the US in Austin.
A statement from the Republican governor of Texas, Greg Abbott, said Samsung would get a $27m grant for creating jobs in the state.
Global Chip Shortage
The chip shortage started as the COVID pandemic lockdowns across the world hindered the production and supply of electronic devices and vehicles for more than a year.
To put an end to this crisis, world's largest producer of semiconductors, TSMC, announced a $100bn investment in Arizona earlier this year, while US contract semiconductor manufacturer GlobalFoundries said it will boost its investment in New York. Several other chipmakers such as Micron Technology have also showed an interest in expanding their American operations if the US would facilitate the processes of building the semiconductor factories.
Samsung as a Chipmaker
Samsung is one of the world’s largest chipmakers with more than 20,000 employees across the United States, and its latest announcement increased its total investment in the country to $47 billion.
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