Texas will receive its largest-ever foreign direct investment from Samsung, as the South Korean electronics giant builds a $17 billion semiconductor factory in the Lone Star State.
Gov. Greg Abbott’s (R) office announced Samsung will build a new semiconductor manufacturing facility in Taylor, lifting the multinational’s total investment in Texas to more than $35 billion since 1996.
The new plant will produce advanced logic chips that power next-generation devices for mobile, 5G, high-performance computing, artificial intelligence, and other applications.
The project, which includes buildings, property improvements, machinery, and equipment, is expected to create over 6,500 construction jobs, 2,000 high-tech positions plus thousands more indirect roles.
The new factory will be built from early 2022 and production will start during the second half of 2024.
Texas’s business-friendly environment lured Samsung.
“Companies like Samsung continue to invest in Texas, because of our world-class business climate and exceptional workforce,” Abbott said in a statement.
“Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families, and will play a major role in our state’s continued exceptionalism in the semiconductor industry,” he added.
The remarks came as the United States faces major supply chain challenges, particularly when it comes to computer chips.
“With greater 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 chairman and CEO of the Samsung Electronics Device Solutions Division, in the same statement.
“We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the United States.”
Intel Corp. recently announced similar plans to invest more than $100 billion in semiconductor factory investments in the United States and Europe over the coming decade.