In the midst of a global shortage of semiconductors, Samsung has chosen a location in Taylor, Texas, for its new $17 billion (£12.7 billion) computer chip facility.
It is the South Korean electronics giant’s largest-ever investment in the United States. Construction on the plant is set to begin early next year, and it is expected to produce 2,000 jobs in the technology industry.
Samsung, like several of its competitors, is racing to increase chip production in the United States in order to address supply chain difficulties.
By increasing our manufacturing capacity, we will be able to better service our customers’ needs and contribute to the global semiconductor supply chain’s stability, “said Kinam Kim, CEO of Samsung Electronics Device Solutions.”
By the second half of 2024, the facility should be up and running. It comes as US President Joe Biden has been pressuring chipmakers to expand production in the United States.
According to White House officials, the new facility will help “defend our supply chains, revitalise our manufacturing base, and create excellent jobs.”
Separately, the governor’s office announced that the firm would get a $27 million grant to aid in job creation in the state.
Mobile, 5G, high-performance computing, and artificial intelligence will all benefit from the chips produced at the new plant. Samsung is one of the world’s top chipmakers, employing over 20,000 people in the United States.
The latest announcement brings the corporation’s overall investment in the world’s largest economy to $47 billion, according to the company.
Manufacturers have been hit hard by the global chip shortage, with carmakers forced to halt production and Apple warns that iPhone shipments might be delayed. Earlier this year, Taiwanese chipmaker TSMC announced a $100 billion investment in Arizona, while GlobalFoundries, a US contract semiconductor manufacturer, said it will increase its investment in upstate New York.