Samsung is considering building 11 new chip factories in the US
Samsung plans to build 11 new chip factories in the US over the next two decades. According to local media, this is apparent from applications submitted by Samsung. It would involve a total investment of $192.1 billion.
The applications have been submitted to the US state of Texas, writes the Austin-American Statesman. The documents show that Samsung is considering building factories in various parts of that state. The company also asks for tax benefits. If the proposals are approved, the company could receive a total of $4.8 billion in tax breaks.
Of the eleven possible factories, nine would be located in Taylor, a small town of about 17,000 inhabitants about 40 kilometers northeast of the Texas capital Austin. Samsung would allocate nearly 168 billion dollars for this. The other two possible factories will be built in Austin, in which Samsung wants to invest 24.5 billion dollars. The eleven factories provide a total of at least 10,000 direct jobs, claims the South Korean chipmaker.
These expansion plans from Samsung mainly focus on the long term. If the plans go ahead, the first factories would be operational by 2034 at the earliest. Two factories will not produce their first chips until 2042, according to the documents. Samsung also emphasizes in a statement that the applications do not mean that there are already concrete plans to build the factories. “We have no concrete plans to build at this time, but the applications are part of Samsung’s long-term planning process to evaluate the viability of the possible construction of additional chip plants in the US,” a company spokesperson said in a statement to local authorities. media.
Samsung has been expanding its production capacity for some time, including in the United States. The company is already building a chip factory in Taylor. The company says it will produce chips there for various purposes, such as the mobile sector, 5G, high-performance computing and AI. That factory will cover approximately 5 million square meters and should be operational in 2024. The considerations may have to do with the US CHIPS law, which should release 50 billion dollars in subsidy for the semiconductor sector.