Samsung will build its much-touted advanced chipset manufacturing plant in Taylor, Texas. While the South Korean tech giant has stated that it hasn’t yet made its final decision on the location of the $17 billion plant in the United States, the Wall Street Journal has reported it will be in Texas and will be announced on November 23rd by Texas Governor Greg Abbott.
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Previous reports indicated that the incentives package at this location in Texas offered the most benefits for Samsung Electronics. Other sites considered by the world largest memory chip manufacturer included the likes of Arizona and New York. The new plant is set to make advanced logic chips used to power mobile devices and autonomous vehicles, as the global auto industry faces a significant semiconductor shortage.
It is set to become the second Samsung chip factory in Texas, with its first located in Austin. Other than Samsung, industry leaders like TSMC and Intel have also been expanding its chip manufacturing in the United States. The country sees it as a vital strategic area of focus as it competes with China for world technology dominance, hence the attractive incentive packages it is offering.
U.S. President Joe Biden’s administration has promised billions of dollars in federal funding to boost chip manufacturing and research to ensure it has an edge over China in advanced technologies. Automotive manufacturing, specifically autonomous and electric vehicles, is a major part of this push.
The US is losing the battle for 5G technologies to China, even though it has banned several telecommunications companies from operating in the country. It is hoping not to lose in other critical technologies, with China becoming the world’s fastest innovator in the industry over the last several years.
With several large manufacturing plants planned around the world, it is hoped that the world can emerge from the global chip shortage within the next 12 to 18 months.
