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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  • 3dgaming - Friday, November 26, 2021 - link

    Are they actually talking of getting water from the missouri?
  • mode_13h - Saturday, November 27, 2021 - link

    Um... unless there's another river in Texas called the Missouri, the actual Missouri river merges with the Mississippi in St. Louis and that obviously flows down through New Orleans.
  • rayhapes - Thursday, November 25, 2021 - link

    Austin used to be called Warterloo....because there are springs and artesian wells all over the place. Austin is right where an enourmous aquafer surfaces. The entire area is like that. There are several giants lakes all over the place. Texas sufferred from serious regional drought in the 1950s and resonded by having the US corp of Engineers dam up evry river they could get their hands on in Texas.
    Gee I know I am sounding like a fan boy for Texas but its just that everyone seems to be spouting some superficial snapshot thinking.
    Lets use a lttle critical thinking here.
    Texas is pretty big, Yes it can be hot and yes it can be dry or wet or what ever but not every where at once.
    Texas from northern to southern tip is further apart than New York City to Atlanta same for east west. Take your pick either direction is more than 800 miles
  • Oxford Guy - Thursday, November 25, 2021 - link

    There is a difference between superficial thought and being an expert in one particular location.

    Draining the great lakes to try to compensate for the thirst of dry states is not a new thing in politics.
  • mode_13h - Friday, November 26, 2021 - link

    > Draining the great lakes to try to compensate

    Except @rayhapes said they *created* lakes by building dams on a bunch of rivers.
  • FunBunny2 - Friday, November 26, 2021 - link

    "Austin is right where an enourmous aquafer surfaces.

    "Across Texas, groundwater is being pumped out of aquifers so quickly that more wells are in danger of going dry, and more springs and surface water may begin to dry up, according to two reports released today."

    16 November 2021 (hot off the presses)
  • whatthe123 - Wednesday, November 24, 2021 - link

    in the last outage texas prioritized businesses and wealthy neighborhoods while other areas froze to death. texas is pretty much all about bending over for businesses even if their citizens die off.
  • Zeratul56 - Wednesday, November 24, 2021 - link

    They should build in state with a stable power grid, like California
  • mode_13h - Wednesday, November 24, 2021 - link

    You jest, but California's power problems mostly stem from their water problems. Wildfire risk had some of their grid taken offline, during high-risk periods.

    But water, fire, power, taxes, and land prices are all reasons why new fabs wouldn't go near California. Texas is fast becoming what California once was. Texans can probably look to its present as a prediction of their future.
  • meacupla - Wednesday, November 24, 2021 - link

    Why would you build in California? That place is worse than Texas for keeping a fab up and running.
    Not only does California have issues with power, they also lack fresh water resources.

    I'd build in Illinois, Ohio or Indiana.

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