Samsung Electronics to Close $ 17 Billion Texas Chip Factory Auto News, ET Auto

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Samsung

Seoul / San Francisco:

Samsung Electronics Co. Ltd. is close to finalizing construction of a $ 17 billion semiconductor plant in Williamson County, Texas, three people with knowledge of the matter have said.

Samsung told Reuters it was pursuing due diligence in several locations and had yet to make a decision.

The plant will manufacture advanced logic semiconductor chips and likely create around 1,800 jobs, Samsung previously said in documents filed with state officials.

One of the people said that although no decision has been made, the Austin suburb of Williamson County was the first because of the proposed subsidies as well as the likelihood of stable sources of electricity. and water.

A winter storm shutdown at Samsung’s existing Austin chip plant in the first quarter caused the equivalent of 300-400 billion won ($ 254-339 million) in damage to wafer production .

The three people declined to be identified as they were not authorized to speak to the media.

Samsung previously announced that it would begin construction on the new 6 million square feet (557,418 square meters) plant in January, with production operational by the end of 2024.

The plan comes at a time when the global auto industry faces a significant semiconductor shortage.

“With the United States making semiconductors a strategic material, it becomes risky to focus only in Asia,” said Park Sung-soon, analyst at Seoul-based Cape Investment Securities.

“Samsung wants to be on the ground in the United States”

In the global chip contract manufacturing industry, Samsung is second behind TSMC, which had a 52.9% market share compared to Samsung’s 17.3% at the end of June, according to analytics provider TrendForce.

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