202124 Nov

Samsung plans to build a $17 billion chip plant in Texas

Summary

Samsung is planning to build a $17 billion semiconductor factory in Taylor near Austin, Texas, over the next three years as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage. The South Korean tech giant announced the 5 million square meter facility Tuesday, a day after The Wall Street Journal broke the news. His administration hopes to fix ongoing chip shortages and address lawmaker concerns that outsourcing chipmaking had made the U.S. more vulnerable to supply chain disruptions. Alan Priestley, vice president of emerging technologies and trends at analyst firm Gartner, told CNBC that Samsung already has a well established ecosystem of partners and suppliers in Texas because it already has a factory in Austin. "As with any major investment like this there were no doubt local incentives (tax breaks, financing etc) to encourage Samsung to build in Texas," Priestley added.

Source: Cnbc

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