Samsung Electronics (Samsung Electronics) has submitted documents to the U.S. authorities in Texas to seek to build a new fab. This new fab may be chosen near Austin, Texas, with an expected investment of $17 billion and the creation of 1,800 jobs.
According to the Austin American-Statesman (Austin American-Statesman): Samsung is responding to calls from both governments to accelerate the finalization of investment plans in the U.S. after attending meetings called by U.S. President Joe Biden and South Korean President Moon Jae-in, respectively, last week. Industry sources predict that Samsung Electronics’ investment plans in the United States will be formally announced as soon as possible before South Korean President Moon Jae-in’s visit to the United States next month.
According to documents provided by Samsung, Samsung is also in talks with other U.S. states including Arizona and New York, but Austin appears to be the most viable option considering Texas’ lucrative tax benefits.
Austin fab covers an area of about 700,000 square meters and is expected to be the world’s largest single factory; Samsung plans to equip this new factory with the most advanced extreme ultraviolet lithography machine, which costs more than $17.96 million each. If everything goes according to plan, the Samsung fab will come online in the fourth quarter of 2023. Samsung expects the economic output of the new fab to be about $8.642 billion in the first 20 years of operation, with a total payroll of $7.323 billion for permanent workers.
Samsung Electronics is expanding its chip manufacturing capabilities as demand for semiconductors grows. Samsung has enough customers in the U.S. such as IBM, Nvidia, Qualcomm, Tesla, etc. that they prefer to use chips made with more advanced processes in Samsung’s U.S.-based fabs, which also gives Samsung an incentive to build new fabs in the U.S. In addition, Samsung also needs to build a new advanced fab in North America to compete more strongly with rival TSMC.
Samsung did not specify which process node the new fab will use, according to speculation, it is likely to become the first U.S. domestic use of the world’s most advanced 3nm process fab.
Austin Technology Council (Austin Technology Council) CEO Amber Gunst said: “Since there are other competitive markets looking to win this agreement, it is important that our state and local governments work together to ensure that Austin stands out. ”
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