The South Korean electronics giant said Tuesday that the facility would create 2,000 high-tech jobs directly and thousands more in the local economy once it is fully operational, announcing its largest-ever investment in the United States. In the second half of 2024, the facility is planned to open for business.
“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,” Kinam Kim, Vice Chairman and CEO of Samsung Electronics, said in a statement.
The city of Taylor in Texas was chosen for the new factory based on a number of considerations, including its proximity to Samsung’s current manufacturing location in Austin, the local semiconductor ecosystem, and government backing, according to the company.
Along with Samsung’s latest new production line in Pyeongtaek, South Korea, the Taylor site will cover more than 5 million square metres and is projected to serve as a significant hub for the company’s global semiconductor manufacturing capacity.
Samsung’s announcement comes at a time when Vice President Joe Biden is promoting semiconductor manufacturing and research in the United States.
Despite the fact that the current global scarcity of computer chips is mostly due to the pandemic’s impact, harsh weather occurrences that have impeded production, and other causes, the United States has been lagging behind other producers for years.
According to the Semiconductor Industry Association, its share in global semiconductor manufacturing fell to just 12% last year. This is a decrease from 37% in 1990. The trade organisation slammed other governments for providing “significant” subsidies that put the US at a “competitive disadvantage.”
The sector is dominated by Asian countries such as Taiwan and South Korea. Samsung and other South Korean businesses are investing heavily in order to increase production in the coming decade.