Samsung has announced plans to build a $17bn (£12.7bn) semiconductor factory in Texas, marking the company's largest single US investment. The plant, located just outside Austin, is expected to become operational in the second half of 2024 and will significantly expand Samsung's chip manufacturing capacity in the United States.
The new facility will focus on producing advanced chips for 5G mobile communications, artificial intelligence, and high-performance computing. Samsung said the investment aims to improve supply chain resilience amid a global chip shortage that has disrupted industries from automotive to electronics. The shortage, exacerbated by pandemic-related shutdowns, has also raised national security concerns due to US reliance on chips manufactured overseas, particularly in Taiwan.
Texas Governor Greg Abbott hailed the project as the largest foreign direct investment in the state's history. Samsung considered sites in Arizona and New York before selecting Texas, citing government incentives and local infrastructure stability. The company's vice-chair, Kinam Kim, highlighted these factors in the decision.
The announcement comes as chipmakers diversify production geographically to mitigate risks. Analysts note that expected US federal subsidies, such as the proposed $52bn Chips Act, are encouraging domestic manufacturing. The Biden administration has pushed for the legislation to boost semiconductor production and reduce dependence on foreign suppliers.
Samsung's existing US operations include another chip plant in Austin and over 20,000 employees nationwide. The new factory brings the company's total US investment to $47bn.
