Electronics giant Samsung said Tuesday it will build a 5 million square-meter semiconductor factory in Taylor, Texas over the next three years. The $17 billion project “will mark the largest-ever investment made by Samsung in the U.S.”, according to a company news release.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” Kinam Kim, the vice chairman and CEO of Samsung’s Device Solutions Division, said in the news release. “With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.”
Semiconductors have taken up to half a year to manufacture overseas due to skyrocketing demand and complications related to COVID-19. An essential component of electronic devices, the semiconductor shortage partially explains things like why it has been more difficult finding gaming consoles in stock, or why car prices are rising.
According to the release, Samsung will break ground on its semiconductor factory early next year. Their goal is to have “the facility operational in the second half of 2024.”
Texas Gov. Greg Abbott joined Kim for Tuesday’s announcement. He took credit for the move on behalf of his state.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” Gov. Abbott said in the release. “I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.” However, Kim also acknowledged President Joe Biden.
“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 leading-edge semiconductor manufacturing in the U.S.,” Kim said. “We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation.”
In addition to the Samsung semiconductor factory announcement, U.S. companies like Ford are also planning to bring production to the United States. These plans come amid economic and national security concerns, since many U.S. companies are dependent on semiconductors produced overseas. This includes Taiwan, which China has long claimed as its own territory.
“I’m hopeful that the big lesson learned here is that in the United States that we produce more of our own chips,” professor of Supply Chain Practice at Syracuse University Patrick Penfield said.