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Texas will get more new factories as Samsung and TI will spend $ 47 billion on new facilities


After a year of searching for the right location for its new US plant, Samsung announced this week that it would build a factory near Taylor, Texas. The company will invest $ 17 billion in a new semiconductor factory and will receive hundreds of millions of dollars in incentives from local and state governments. Separately, Texas authorities announced that Texas Instruments also intends to spend $ 30 billion on new factories in the state.

Samsung will spend $ 17 billion on the New Texas Fab

Samsung has yet to reveal all the details about its factory near Taylor, Texas, but for now the company says the new factory will cover an area of ​​over 5 million square feet and will employ 2,000 workers directly and another 7,000 indirectly. To put the number in context, Samsung’s plant near Austin, Texas currently employs about 10,000 workers.

Samsung will begin construction of the new plant in the first half of 2022 and expects to be operational in the second half of 2024. It usually takes about a year to build a factory building for semiconductor production, then about a year to install and install all necessary equipment .

Samsung has not announced which process technologies will be used at its plant near Taylor, Texas, but says it will produce chips for 5G, artificial intelligence (AI), high-performance computing (HPC) and mobile applications, implying that the plant will acquire fairly advanced technologies. In fact, given that all Samsung nodes thinner than 7 nm rely on extreme ultraviolet (EUV) lithography, it is reasonable to expect that the new factory will be capable of EUV. As a result, Samsung customers in the U.S. (such as IBM, Nvidia, and Qualcomm) will be able to manufacture their chips in the U.S. rather than South Korea, which could allow their developers to deal with systems used by the U.S. government.

“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. “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 state-of-the-art semiconductor manufacturing in the United States. We also thank the administration and Congress for their bipartisan support for quickly enacting federal incentives for domestic chip production and innovation. ”

Samsung’s new semiconductor plant will be located 25 miles from the company’s plant near Austin, Texas, so facilities will be able to share infrastructure and resources (such as materials and supplies).

Samsung says it will spend about $ 6 billion on building the building, as well as improving local infrastructure. The tools the factory will use will cost another $ 11 billion. Meanwhile, Samsung will receive hundreds of millions in incentives from the state, county and city to build the new plant, according to media reports. Some of the packages have not yet been approved.

Texas Instruments will invest $ 30 billion in new U.S. factories

Samsung is not the only company building new factories in Texas. The Texas governor recently announced that Texas Instruments plans to build several new 300mm factories near Sherman. In total, TI intends to build as many as four tile production plants in the region in the coming decades, and the cumulative investment is expected to amount to 30 billion dollars because the factories will eventually be upgraded.

Texas Instruments itself has yet to officially announce its investment plans, but Gov. Greg Abbott’s announcement indicates that major decisions have been made and that TI now needs to finalize the details.

Sources: Samsung, Austin American-Statesman, Texas.gov



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Naveen Kumar

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