Samsung announced in November of 2021 that it would be expanding it chip foundries in the US with a new foundry in a new location. The company examined multiple locations and was focusing on Texas. Now according to a new report from Business Korea, Samsung has acquired the land in Taylor, Texas and is awaiting approval from the municipality in which it will discuss inclusion of both plots into the Tax Inclusion Reinvestment Zone (TIRZ), for which Samsung has its other chip manufacturing plant.
While some chips are manufactured on U.S. soil, like Samsung operating a chip factory in Texas already. The COVID-19 response in much of the world has reduced manufacturing output in China leading to a shortage of semiconductors. Another factor that has led to a semiconductor shortage is the COVID-19 lockdowns, which has led to a demand for cell phones and PCs for activities like remote work and leisure activities like gaming during the last two years. With an ever-increasing demand for semiconductors in the auto industry, electric bicycles, smart appliances and smart devices, the demand doesn’t seem like it will slow anytime soon.
Given all of the market factors, Samsung is reportedly spending an additional $17 billion to boost its semiconductor manufacturing capacity in Texas. Currently, with the project being fast-tracked, site maintenance and foundation work is in progress.