Following many reports and a survey of various places in the United States, Samsung has formally declared that Taylor, Texas, will be the home of the Korean conglomerate’s $17 billion advanced chip production facility. According to the corporation, the new hub will increase the production of various semiconductor solutions that will be found in next-generation solutions such as smartphones.
As Kinam Kim, Vice Chairman and CEO of Samsung Electronics Device Solutions Division discusses the news below, Samsung’s anticipated $17 billion investment will enable the facility to mass-produce semiconductors for smartphones, 5G connectivity, high-performance computing, and AI.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future. 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. 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 U.S.”
According to the Korean tech behemoth, construction would begin in the first part of 2022, with operations set to commence in the second half of 2024. Unfortunately, according to this plan, this chip manufacturing hub will not be one of the locations where Samsung will mass produce its 3nm wafers, as a prior rumor stated that mass production of this advanced process will begin in the first half of 2022.
In addition to the chip plant in Pyeongtaek, South Korea, the complex will encompass more than 5 million square meters and is planned to serve as a high-profile location for semiconductor manufacture. Though Apple continues to use TSMC’s technology because various reports claim that the Taiwanese manufacturer offers technologically superior nodes compared to Samsung, a chip hub in the United States could reduce the time it takes for companies like Apple and Qualcomm to receive shipments, which could be a critical factor given that the chip shortage is expected to last several years.
If Samsung can close the advanced wafer production gap with TSMC, it is possible that some of TSMC’s profitable clients would switch to Samsung’s side. Qualcomm is said to have offered Samsung 4nm chip orders for its upcoming Snapdragon 8 Gen1, and Google might secure future cooperation with the chipmaker and timely shipments from this facility for improved Tensor chipsets.
The tech behemoth is said to have begun work on the second-generation Tensor for the Pixel 7 series, and it’s not unexpected that Samsung has received all of those orders. Once operational, Samsung’s $17 billion Texas chip facility is expected to produce over 2000 high-tech jobs and employ thousands more.
Do you believe that Samsung might soon catch up to its rival TSMC and lure the latter’s lucrative clients especially Apple over to its side? Tell us in the comments section.
