Samsung on Tuesday announced plans to build a $17 billion semiconductor factory in Central Texas, a major investment amid a global chip shortage.
The facility will be located in Taylor, where Samsung already has a production facility. It is a city about 30 miles from Austin, with a population of about 16,000 people. The electronics giant will hit the ground next year, and production of the chip is expected to begin in 2024.
Samsung sells more phones and TVs than any other company, but it also has a big business selling memory chips to device makers around the world. In recent months, Samsung’s chip business has been fueled by increased demand for devices as people work from home during the coronavirus pandemic and data centers store everything we’re doing online.
But the growing demand for work-from-home technology such as PCs, tablets and webcams went beyond the semiconductor manufacturing industry’s ability to supply the chips. Chip shortages soon extended beyond remote work and school needs to gaming PCs affecting home entertainment products such as tablets, game consoles, TVs and graphics cards.
Biden Administration Supply chain problems answered By prompting companies to be more transparent about their needs and supplies, and calling on Congress to create a Critical Supply Chain Resilience Program.
Kim, CEO of Keenum, Samsung Electronics Device Solutions Division, said in a statement.
The 2.5 million square foot facility in Taylor will be larger than Samsung’s already large presence in Austin. In 2012, the company announced a $4 billion investment in a Texas plant to boost chip production to meet growing demand for mobile devices, including smartphones and tablets.