Samsung to Create 2,000 Jobs in Texas with $ 17 Billion Chip Factory

Announcing its largest investment in the United States, the South Korean electronics giant said on Tuesday that the factory would create 2,000 high-tech jobs directly and thousands more in the local economy once fully operational. The facility is expected to start operating in the second half of 2024.

“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 Electronics, in a statement.

The company said it chose the city of Taylor in Texas for its new plant based on multiple factors, including its proximity to Samsung’s current Austin manufacturing site, the local semiconductor ecosystem and government support.

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Taylor’s site will span over 5 million square meters and is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity, along with its latest new production line in Pyeongtaek, South Korea.

Samsung’s announcement comes at a time when the Biden administration has been pushing semiconductor research and production in the United States.

Although the current The global shortage of computer chips is mainly due to the impact of the pandemic, extreme weather events that have hampered production and other factors, the United States has lagged behind others producers during years.

Its share of semiconductor manufacturing worldwide dropped to just 12% last year, according to the Semiconductor Industry Association. That’s less than 37% in 1990. The trade group blamed “substantial” subsidies offered by foreign governments that put the United States at a “competitive disadvantage.”

Asian countries, including Taiwan and South Korea, dominate the industry. Samsung and other South Korean manufacturers are spending huge amounts of money to prop up their production over the next decade.
In May, Samsung said that It would invest 38 trillion Korean won ($ 34 billion) in producing logic chips, the brains that power computers. That brings his total spending on the business to 171 trillion won ($ 151 billion). the next decade, including commitments announced in 2019.

The chipmaker also announced In May which has started construction of the production line in Pyeongtaek, one of the world’s largest semiconductor production centers, which it expects to complete in 2022.

– Matt Egan and Diksha Madhok contributed to this report.

Reference-www.cnn.com

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