As the chip shortage continues to affect several companies that rely on chips to manufacture their products, Samsung has decided to proactively move by expanding its chip manufacturing capacity to even greater heights. This semiconductor manufacturing facility will be located in Taylor, Texas, and will cost a whopping $17 Billion.
In an announcement made on their official website, Samsung says this new facility will manufacture advanced logic semiconductor solutions to power the next-generation innovations and technologies in a wide range of industries. Now that cars, computers, smartphones, and other gadgets use more semiconductor chips than ever before, this new facility will help meet the surging demand for chips.
In his words Kinam Kim, Samsung’s Vice Chairman, and CEO – said; “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. We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation.”
Some of the technologies that Samsung is targeting with their new chips include high power computing (HPC), mobile, artificial intelligence (AI), and many more. Samsung is already manufacturing chips for many of these technologies that most of the big tech brands, including Apple, Google, and Tesla, rely on to make some of their flagship products.
The timing of this project is really spot on, now that many car manufacturers in the US will be going fully electric in the next decade. The demand for these next-gen chips to power these cars that highly rely on computing will be assured.
This project will be kicked in off in the first half of 2022 and is expected to be ready by the end of 2024. The manufacturing facility is set to cover over 5 million square meters, making it one of the biggest chip manufacturing facilities in the US. Some of the reasons Samsung chose Texas over several other locations in the US include the semiconductor ecosystem in Texas, infrastructure stability, local government support, and community development opportunities.
Samsung has already been manufacturing chips in the US for the past 25 years, and this addition further cements its capacity as one of the leading chipmakers in the world. With this new project included, Samsung’s total investment in manufacturing facilities within the US alone is now over $47 Billion. The company currently hires more than 20,000 workers across all its investments in the US since 1978.
The company plans to hire more than 2000 more employees in the US to run this new facility. Most of these will include engineers, plant operators, and many more.