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Samsung on Tuesday announced plans to build an advanced semiconductor plant in Taylor, Texas, which is estimated to create more than 2,000 directly connected high-tech jobs in the region.
With total expected spending of $ 17 billion on buildings, property improvements, machinery and equipment, the chip factory is Samsung’s largest investment in the U.S. to date, the company said.
The plant is expanding the presence of the South Korean technology giant in Texas, which is currently limited to the chip factory in Austin. Samsung’s new plant will be dedicated to producing silicon to be applied in a variety of segments including mobile devices, 5G, high-performance computing and artificial intelligence. According to The Wall Street Journal, the capacity will go according to the contract production.
“With greater production capacity, we will be able to better meet the needs of our customers and contribute to the stability of the global semiconductor supply chain,” said Kinam Kim, Vice President and CEO, Samsung Electronics Device Solutions Division.
The company plans to start operating on a 5 million-square-foot site in the first half of 2022, with the hope that the facility will be commissioned in the second half of 2024. The factory is expected to create more than 2,000 jobs and thousands of related jobs. , when fully operational. Samsung also intends to create a Samsung Skills Center for the Taylor Independent School District that will provide local students with skills development, internships and employment.
Taylor reportedly offered tax breaks to win over Samsung, including property tax breaks of about 92.5% in the first 10 years, WSJ reports Monday.
“In addition to our partners in Texas, we are grateful to the Biden administration for creating an environment that supports companies like Samsung as we work to expand premium semiconductor production in the United States,” Kim said. “We also thank the administration and Congress for their bipartisan support to quickly introduce federal incentives for domestic chip production and innovation.”
Biden and Congress are working to strengthen chip production in the United States through industry funding and subsidies. The Senate approved $ 52 billion in subsidies for new chip plants in June, although the law has yet to be approved by the House.
In addition to Samsung, TSMC and Intel are also planning major expansions of their semiconductor manufacturing capabilities amid the global chip crisis. TSMC, for example, plans to spend $ 100 billion on production-related investments over the next three years.
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