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South Korean tech giant Samsung Electronics will build a second US semiconductor fabrication plant for $17 billion in Taylor, a small city near its current fab in Texas, aiming to complete construction in the second half of 2024, a filing showed Wednesday.
The construction of its second foundry in US will start in the first half next year. The filing was disclosed simultaneously with the announcement by Texas Gov. Gregg Abbot, US Sen. John Cornyn and Kim Ki-nam, head of Samsung Electronics’ Device Solutions Division.
“The impact of this will be felt not only here in Texas, but will actually impact the entire world,” Abbott said Tuesday local time in a press conference.
“After a thorough and comprehensive search, Samsung has chosen Taylor, Texas, as the site of its new state-of-the-art semiconductor chip fabrication plant.”
The new 5 square-kilometer site in the suburban city of Taylor is 25 kilometers from Samsung Electronics’ first US semiconductor plant Austin, Texas, which opened in 1998.
The massive investment is made to meet a growing demand for system semiconductor engineering and to contribute to easing the global chip supply chain disruptions, according to officials.
Samsung Electronics said the proximity will allow the new foundry to capitalize on the infrastructure in Austin. Both plants will be dedicated to making chips for clients as designed, while the chip packaging capacity is likely to stay in Asia.
The new chipmaking facility is to create around 2,000 jobs.
The deal will involve the biggest single capital expenditure in the US in Samsung’s history, Samsung Electronics said in a statement. The investment will be in buildings, property improvements, machinery and equipment.
The new foundry will enable production of chips equipped with cutting-edge technologies suitable for fifth-generation networks, high-performance computing and artificial intelligence.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” Kim of Samsung Electronics Device Solutions Division said in a statement.
“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.”
The deal will also bring Samsung‘s US investment to a total of $47 billion since 1978, where the company now has over 20,000 employees across the country.
Aside from some 2,000 new jobs in Taylor, Samsung Electronics vowed to provide financial backing for Samsung Skills Center for the Taylor Independent School District to help students develop skills for future careers.
“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 US,” Kim said.
Samsung Electronics added the new US production line will serve as a core location alongside its Austin foundry plant, as well as semiconductor lines in Hwaseong and Pyeongtaek, Gyeonggi Province, a step designed to better address client demand and secure new chip clients.
Samsung’s Austin plant manufactures products using nodes from 14 nanometers to 65 nanometers. Its contract manufacturing products range from radio frequency integrated circuits to display driver integrated circuits, solid state drive controllers and image sensors.
In the meantime, in Korea, Samsung is poised to add four more semiconductor plants in Pyeongtaek by 2030, besides two plants with one being operational since August 2020. A third one is scheduled to complete construction by the second half of 2022.
The new plants are likely to cement Samsung Electronics de facto leader Lee Jae-yong‘s pledge in May to inject a combined 171 trillion won ($143.7 billion) through 2030 to advance research for semiconductor technology and build new chip fabrication lines, in line with Lee’s mantra of “System Semiconductor Vision 2030” unveiled in 2019.
Samsung, an integrated device manufacturer that operates foundry lines and produces its own designs, started mass-producing 14-nanometer dynamic random-access memory based on extreme ultraviolet technology in October, a year after Lee met officials of the Netherlands-based semiconductor equipment supplier ASML, including Chief Executive Officer Peter Wennink.
Samsung is also working to mass produce 3-nanometer chips for foundry clients by using gate-all-around transistors for semiconductor engineering.
By Son Ji-hyoung (consnow@heraldcorp.com)
http://www.koreaherald.com/view.php?ud=20211124000097
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