Samsung Electronics close to finalizing $17B Texas chip plant -sources

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The company told Reuters it is continuing to do due diligence in several locations and has yet to make a decision.

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Seoul/San Francisco – Samsung Electronics Co Ltd is close to finalizing construction of a $17 billion semiconductor factory in Williamson County in the US state of Texas, three people with knowledge of the matter said.

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Samsung told Reuters that it is continuing due diligence in several places and has not yet made a decision.

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Samsung had earlier said in filings to state officials that the factory would make advanced logic semiconductor chips and was likely to create about 1,800 jobs.

Samsung’s decision on new US chip plant location ‘imminent’ – Texas county judge

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One of the people said that although no decision has been made, the Austin suburb of Williamson County is at the forefront because of the subsidies on offer, as well as the potential for stable sources of electricity and water.

A winter storm shutdown at Samsung’s existing chip plant in Austin caused $300 billion to $400 billion ($254 million to $339 million) in damage to wafer production during the first quarter.

The three men declined to be identified as they were not authorized to speak to the media.

Samsung previously said it would begin construction of the new 6-million-square-foot (557,418-square-meter) plant in January, with production expected to begin by the end of 2024.

The plan comes at a time when the global auto industry is facing a significant shortage of semiconductors.

“With the United States turning semiconductors into a strategic material, it’s only becoming a risk to concentrate in Asia,” said Park Sung-soon, an analyst at Seoul-based Cape Investment Securities.

“Samsung wants to hit the ground in America”

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In the global chip contract manufacturing industry, Samsung is second only to TSMC, which had a market share of 52.9%, compared to 17.3% at the end of June, according to analysis provider TrendForce.

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