Samsung has revealed more details about their plans to build a state-of-the-art chip factory in the US.
This information was revealed in the context of the Joe Biden administration determined to make chip supply security become a national priority for the US.
Specifically, Samsung plans to invest $17 billion in the Silicon Silver Project and create about 1,800 jobs in the first 10 years. About $5.1 billion will be spent on building buildings and renovating real estate while the remaining $9.9 billion will be used for investment in machinery and equipment.
Samsung filing with the Texas Government shows that this project has priority in the state. In addition, Samsung is also researching backup locations in Arizona, New York and in South Korea.
“Because of its strong relationship with the local community and 25 successful manufacturers in Texas, Samsung Austin Semiconductor wants to continue to invest in the state” the Samsung document said.
Samsung’s statement made in the first few weeks of President Joe Biden’s administration term, it emphasized the importance of cutting-edge technologies including semiconductor technology and artificial intelligence and next generation networking. President Biden has also ordered global supply chain assessments for several other sectors such as microchips, large capacity batteries, pharmaceuticals, key minerals and strategic materials such as rare earths.
In January, Bloomberg said for the first time that Samsung was considering building an advanced chip facility in the US in hopes of acquiring more American customers and narrowing the gap with Taiwan’s chip maker TSMC. Samsung is also in talks to build a factory in Austin with the ability to produce advanced 3-nanometer chips. Details of Samsung’s discussion with that local government continue to be leaked in other files.
Right now, the demand for chips is soaring globally. Samsung’s Silicon Silver project is expected to add more than 7 million square feet of new campus to its Austin campus, which has been in operation for decades. It is estimated that 542 new workers will move to the city, contributing to an increase of 1,626 new residents.
If Samsung decides to locate the factory here, the project will start groundbreaking in the second quarter of 2021. And it is expected to begin operations in the fourth quarter of 2023. This project will create strong economic impacts for the city of Austin in particular and the state of Texas in general.
At the moment, Samsung’s large-scale plant in Austin has not returned to operation since 16 February after the state power agency ordered them to suspend operations due to widespread power outages. City officials said electricity could be re-supplied but water still lost would delay the plant’s run time for longer.
The US state of Texas is experiencing a record badly blizzard. The sharp drop in temperature and heavy snow cover have disrupted many power grid systems, leaving tens of thousands of people living in the absence of electricity. Frozen water also interrupted the water supply.