Last week, Samsung Electronics CEO Lee Jae-yong traveled to the United States, where he held several productive meetings, and approved, upon his return to South Korea, the choice of a new site for the construction of the company’s second plant in Texas, where it will produce semiconductor components for customer orders.
Since the participants in the process have already made official statements in this regard, the choice of the city of Taylor as a new site for the construction of Samsung’s enterprise can be said as a fait accompli. Construction will begin in the next half of the year, and the enterprise will begin work in the second half of 2024. In the long term, the company will provide jobs for about 2,000 highly qualified employees, and another 6,500 people will be involved in the construction. The enterprise will occupy an area of about 5 million square meters and will be able to produce, according to unofficial data, 5-nm and 4-nm products using EUV lithography. The current Austin facility, only 40 km away from the new site, specializes in the production of 28nm and 14nm chips.
Samsung will be able to apply for $ 3 billion in subsidies from a special fund created by the US government to stimulate the development of the national industry. Another $ 27 million will be allocated by the Texas authorities, and in general they promised rather generous tax breaks during the first twenty years of the enterprise’s operation. In fact, they will help Samsung save hundreds of millions of dollars, but the representatives of the parties at the official press conference preferred to talk about the presence of a stable and developed infrastructure, which attracted Samsung to another Texas city with its project. Governor Greg Abbott said the state’s electrical system is stable and reliable, in response to a press question about the risk of a repeat February power outage that caused Samsung’s first Texas facility to suffer losses of more than $ 300 million.
The budget for the construction of the new enterprise is estimated at $ 17 billion. The US federal authorities also strongly welcomed Samsung’s decision to build another enterprise in the country, since they are now concerned about finding ways to combat the shortage of semiconductor components, considering the localization of production as one of them. For Samsung, the new American venture is also important in the sense that the company intends to triple its contract revenue in the coming years. This business is not subject to cyclical market fluctuations, unlike the production of memory chips, which generates Samsung’s main income.