Samsung Disburses USD 17 billion to Build a Chip Factory


Samsung will soon announce its plans to create a new chip factory in Texas, United States. Its value is not kidding, reaching USD 17 billion.

The factory will be located in the city of Taylor, about 48 km from Austin, where Samsung has other product facilities already established. The area of ​​land that will be used to build the factory is 485 hectares, wider than Samsung's factory in Austin.

Chip production is expected to occur at the end of 2024. Samsung will produce processors that will be used in its cellphones as well as orders from other companies.

Why did Samsung choose Taylor city? One of the reasons is the incentives provided by the local government, namely tax cuts of up to 90% for the first 10 years.

Previously circulated reports said that Samsung would produce 3nm chips at the factory.

The construction of this factory occurred after the semiconductor shortage crisis that has occurred since the pandemic and is still ongoing today. The crisis had an impact on many companies, ranging from automotive, game consoles, and of course PCs and mobile devices.

US President Joe Biden tried to overcome the crisis by boosting production of chips from the US, as well as reducing disruptions in the supply chain of components. The US Senate also approved subsidies for chip-making plants worth USD 52 billion, although the legislation itself has not been approved at this time.

The shortage of semiconductors has also made many chipmakers build new factories in various countries. Like TSMC who worked with Sony to build a factory in Japan. But of course the chip production will not happen immediately, just like the Samsung factory in the US.

Samsung Disburses USD 17 billion to Build a Chip Factory Samsung Disburses USD 17 billion to Build a Chip Factory Reviewed by thecekodok on 4:59:00 AM Rating: 5
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