Samsung will spend 17 billion U.S. dollars to build a semiconductor factory in the United States

“Nihon Keizai Shimbun” website recently reported that recently, South Korea’s Samsung Electronics announced that it will build a “most advanced semiconductor factory” in Texas, the United States. The company will invest 17 billion U.S. dollars and strive to start production in the second half of 2024. Samsung will strive to catch up with Taiwan Semiconductor Manufacturing Company (TSMC), which is a leader in the field of semiconductor foundry.

As early as May this year, Samsung announced a new advanced semiconductor factory in the United States, and has been choosing a location for construction. Taking into account the subsidies promised by the U.S. federal government and the infrastructure conditions of local governments, the city of Tyler, Texas was finally chosen. One of the great benefits of choosing this city is the ability to dispatch technicians from Austin, about 30 kilometers away.

The new plant is scheduled to start construction in the first half of 2022. Samsung stated that “the new factory will adopt advanced processes,” and some analysts believe that it will produce a new generation of semiconductors with a line width of 3 nanometers. Samsung currently mass-produces 5 nanometer semiconductors as the most advanced semiconductor. It plans to start production of 3 nanometer semiconductors at its Korean plant in 2022. It is expected that the new plant will also produce semiconductors with the same performance.

This will be the sixth semiconductor “pre-process factory” built by Samsung since the Pyeongtaek plant in South Korea started production in 2017. As the new plant is put into operation, a production layout of 3 in South Korea, 2 in the U.S., and 1 in China will be formed.

The United States has many fabless semiconductor companies such as Qualcomm and Xilinx. IT giants such as Google and Amazon have also begun to design their own semiconductors and are expected to become potential customers. Samsung will promote the construction of a state-of-the-art factory in the United States, which has many customers.

Samsung’s vice chairman Lee Jae-yong recently visited the United States and held talks with relevant officials in the US government to discuss subsidies. The US government plans to provide a total of $52 billion in subsidies to the semiconductor industry. It is said that Samsung decided to build a new factory after confirming the conditions for granting subsidies.

TSMC has also accepted the request of the United States and is advancing the construction of a semiconductor factory in Arizona. However, Intel in the United States is opposed to subsidies to foreign companies, and there is still uncertainty about whether Samsung can receive subsidies as originally planned.

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