After a year of searching for the right place of its new U.S. fab, Samsung this week announced that it would build a fab near Taylor, Texas. The company will invest $17 billion in the new semiconductor fabrication plant and will receive hundreds of millions of dollars in incentives from local and state authorities. Separately, Texas authorities have announced that Texas Instruments intend to spend $30 billion on new fabs in the state, as well.

Samsung to Spend $17 Billion on New Texas Fab

Samsung yet has to disclose all the details about its fab near Taylor, Texas, but for now the company says that the new fab site will occupy an area of over 5 million square meters and will employ 2,000 workers directly and another 7,000 indirectly. To put the number into context, Samsung's fab near Austin, Texas currently employs about 10,000 of workers. 

Samsung will start construction of the new fab in the first half of 2022 and expects it to be operational in the second half of 2024. It usually takes about a year to construct a building for a semiconductor manufacturing facility and then about a year to install and set up all the necessary equipment.

Samsung has not announced which process technologies will be used at its fab near Taylor, Texas, but says it will produce chips for 5G, artificial intelligence (AI), high-performance computing (HPC), and mobile applications, which implies that the fab will gain fairly advanced technologies. In fact, keeping in mind that all of Samsung's nodes thinner than 7 nm rely on extreme ultraviolet (EUV) lithography, it is reasonable to expect the new fab to be EUV capable. As a result, Samsung's customers from the U.S. (such as IBM, Nvidia, and Qualcomm) will be able to produce their chips in the U.S. rather than in South Korea, which might allow their developers to address systems used by the U.S. government. 

"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," said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division. "In addition to our partners in Texas, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the U.S. We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation."

Samsung's new semiconductor production plant will be located 25 kilometers away from the company's fab near Austin, Texas, so the facilities will be able to share infrastructure and resources (such as materials and supplies).

Samsung says that it will spend about $6 billion on construction on the building as well as improvements of the local infrastructure. Tools that will be used by the fab will cost another $11 billion. Meanwhile, to build the new plant Samsung will receive hundreds of millions in incentives from the state, the county, and the city, according to media reports. Some of the packages have not been approved yet. 

Texas Instruments to Invest $30 Billion on New U.S. Fabs

Samsung is not the only company to build new fabs in Texas. The Governor of Texas recently announced the Texas Instruments was planning to build several new 300-mm fabs near Sherman. In total, TI intends to build as many as four wafer fabrication facilities in the region over coming decades and the cumulative investments are expected to total $30 billion as fabs will be eventually upgraded.

Texas Instruments itself yet have to formally announce its investments plans, but the announcement by the governor Greg Abbot indicates that the principal decisions have been made and now TI needs to finalize the details. 

Sources: SamsungAustin

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  • Silver5urfer - Sunday, November 28, 2021 - link

    Even my basic one which just mentions how housing cost is going to become worse is also removed.
  • Silver5urfer - Sunday, November 28, 2021 - link

    Probably to the AT editors, somethings do exist in vaccum without any effects or basic fundamental consequences. We can remember how that great Foxconn factory was supposed to be coming to Wisconsin and poof. It's not now because ? Better not to talk I guess what else.
  • Oxford Guy - Monday, November 29, 2021 - link

    Tech is political. These companies use politics to establish these fabs. The article talks about the politics.

    So, apparently the new rule is that only politics that seem favorable for the companies is allowed. Aka Orwellian nonsense where press releases take the place of a forum.
  • mode_13h - Monday, November 29, 2021 - link

    I understand the need to keep off-topic flame wars from erupting.

    That's why I tried to focus on suggestions for how the policy is enforced.

    Hopefully, my posts about that were at least read by the mod who removed them.
  • Oxford Guy - Monday, November 29, 2021 - link

    Too many tech websites have tried to claim that politics is something separate from their coverage. It’s not separate at all. To make that claim is incredibly illogical.

    To make it when discussing a fab that is going to exist -only- because of politics is even worse than the usual cavalier illogic.

    It always boils down to one thing: ‘We only want information present on this site that makes investors happy; feel free to do your thinking elsewhere.’

    It’s the illusion of community, the illusion of there being a forum. The role of the forum is to give astroturfers the ability to present information from companies as if it’s the community scuttlebutt.
  • erotomania - Friday, December 10, 2021 - link

    See guys, this is why Ryan can't review GPUs anymore. He's gotta babysit this group full time now.
  • mode_13h - Saturday, December 11, 2021 - link

    > He's gotta babysit this group full time now.

    LOL. Given the length of time *actual* spam posts seem to hang around, there's definitely not much time or effort being spent on moderation of the news comments.

    BTW, I even try to helpfully flag them (i.e. by replying), so that all a mod would have to do is simply search the page for "spam", every couple days.
  • Oxford Guy - Friday, December 17, 2021 - link

    'He's gotta babysit this group full time now.'

    Indeed. Critical thinking is for babies. Adults are happy to be on the dole, regardless of how irrational the politics are.
  • FunBunny2 - Monday, December 20, 2021 - link

    " Adults are happy to be on the dole"

    case in point: let's see how much moolah Rand "we can't afford Socialism (when it's coastal states in need, of course)" Paul wants from Uncle Sugar to bail out those idiots who continue to live in his state's tornado alley.
  • FunBunny2 - Friday, November 26, 2021 - link

    So, here's the state list of rainfall:

    TX is 34th. not the brightest place to put a water gulper.

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