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Samsung Considering Austin For Its New Chip Plant In The US Worth $17 Billion


02/05/2021


Samsung Considering Austin For Its New Chip Plant In The US Worth $17 Billion
The South Korean electronics giant Samsung Electronics Co Ltd is planning to set up a new $17 billion chip plant and is considering Austin, Texas, in the United States as one of the possible sites. According to documents filed with Texas state officials by Samsung, this new factory will help to create 1,800 jobs.
 
According to the documents, the South Korean company has sought a total tax abatement of $805.5 million over a period of 20 years from the Travis County and the city of Austin in addition to other tax concessions.
 
The company could start work on the construction of the factory in the second quarter of this year if Austin is selected, Samsung said in its filings, and added that operations ta the plant can begin by the third quarter of  2023.
 
"This project is highly competitive, and the company is looking at alternative sites in the US including Arizona and New York, as well as abroad in Korea...," Samsung said in the documents, claimed several reports. The company added that the consideration for the site considers factors such as the access to talent, the prevalent chip ecosystem and the speed to market for the manufactured chips.
 
Tesla Inc, Qualcomm Inc and Nvidia are among the American customers of Samsung for its contract manufacturing chip business.
 
Samsung also plans to make "advanced logic devices" at the factory which means that the company would strive to develop and manufacture the smallest, fastest kinds of computing chips for its clients, said the company in its filings. There is already an existing chip plant of the company at Austin that manufactures computing chips.
 
While confirming that it was planning to expand its chip making facilities, Samsung in a statement to the media said tha it had not yet taken any decision on the matter.
 
Building out 7 million square feet (650,000 square meters) of new space on a 640-acre (259-hectare) site that is already owned by the company are stated in the documents of the project submitted by the company.
 
A call to Samsung to set up a factory in his home state of New York was given by US Senate Majority Leader Charles E. Schumer and had said that it was crucial for the US to be able to compete with China in increasing chip production in the US.
 
While some of its chips are made in the United States by the American chip maker Intel Corp, a larger part of the company’s chips are manufactured by contract manufacturers who and most of the manufacturing facilities of those contract manufacturers such as Taiwan Semiconductor Manufacturing (TSMC) Co Ltd and Samsung are outside of the United States - in Taiwan and South Korea, respectively.
 
Plans for building a $12 billion chip plant in Arizona expected to come online in 2024 was announced by TSMC last year, which includes the iPhone maker Apple Inc as one of its major customers.
 
The Austin American-Statesman newspaper had first reported the South Korean company’s filings with Texas officials.
 
(Source:www.businessworld.in)