Texas To Get Multiple New Fabs as Samsung and TI to Spend $47 Billion on New Facilities

After a year of searching for the right location for its new US factory, Samsung announced this week that it would build a factory near Taylor, Texas. The company will invest $ 17 billion in the new semiconductor manufacturing plant and will receive hundreds of millions of dollars in incentives from state and local authorities. Furthermore, Texas authorities have announced that Texas Instruments also intends to spend $ 30 billion on new factories in the state.

Samsung to Spend $ 17 Billion on New Texas Factory

Samsung has yet to reveal all the details about its fabulous near Taylor, Texas, but for now the company says the new plant will occupy an area of ​​more than 5 million square meters and employ 2,000 workers directly and another 7,000 indirectly. To put the number in context, Samsung’s fabulous factory near Austin, Texas, currently employs about 10,000 workers.

Samsung will begin construction of the new factory in the first half of 2022 and expects it to be operational in the second half of 2024. It typically takes about a year to build a building for a semiconductor manufacturing plant and then about a year. year to install and configure all necessary equipment.

Samsung hasn’t announced which process technologies will be used at its factory near Taylor, Texas, but says it will produce chips for 5G, artificial intelligence (AI), high-performance computing (HPC), and mobile apps, implying that the fabulous you will get quite advanced technologies. In fact, considering that all Samsung nodes under 7nm rely on extreme ultraviolet lithography (EUV), it is reasonable to expect the new factory to be EUV compliant. As a result, Samsung customers from the US (such as IBM, Nvidia and Qualcomm) will be able to produce their chips in the US rather than South Korea, which could allow their developers to tackle the systems used by the company. US government

“With increased 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,” said Kinam Kim, vice president and chief executive officer of Samsung’s electronic device solutions division. “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 cutting-edge semiconductor manufacturing in the US We also thank the administration and Congress for their bipartisan support for swiftly enacting federal incentives for national chip production and innovation. “

Samsung’s new semiconductor production facility will be located 25 kilometers from the company’s factory near Austin, Texas, so the facilities will be able to share infrastructure and resources (such as materials and supplies).

Samsung says it will spend about $ 6 billion on the construction of the building, as well as local infrastructure improvements. The tools the factory will use will cost another $ 11 billion. Meanwhile, to build the new plant, Samsung will receive hundreds of millions in incentives from the state, county and city, according to media reports. Some of the packages have not yet been approved.

Texas Instruments will invest $ 30 billion in new US factories.

Samsung isn’t the only company building new factories in Texas. The Governor of Texas recently announced that Texas Instruments planned to build several new 300mm factories near Sherman. In total, TI intends to build up to four wafer manufacturing facilities in the region over the next several decades and cumulative investments are expected to total $ 30 billion as the factories eventually upgrade.

Texas Instruments itself has yet to formally announce its investment plans, but Governor Greg Abbot’s announcement indicates that major decisions have been made and now TI needs to finalize the details.

Sources: Samsung, Austin American-statesman, Texas.gov

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