Samsung plans for more than $10 billion investment for chipmaking plant in Texas

Samsung is a leading semiconductor manufacturer as it dominates the memory chip market. The company is investing heavily in foundry operations for advanced logic chips as it seeks to compete more effectively with TSMC.

TSMC is currently the market leader and Samsung is reportedly considering investing $10 billion in a new chipmaking plant in Texas.

According to a Bloomberg report, Samsung wants to build its latest logic chip manufacturing plant in the US. It is ready to spend over $10 billion for this project. Samsung hopes that this investment will help it gain more clients in the US, thereby taking the fight to TSMC.

Austin, the world’s largest memory chip and smartphone maker, is in discussions to discover in Texas that people familiar with the project could build 3 nanometers of advanced chips in the future.

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Samsung plans to beat TSMC

The company plans are basic and subject to change, but now the goal is to start construction this year, install key equipment by 2022, and then start operations by 2023. Samsung’s plans to bankroll the project would cost more than $10 billion despite fluctuations in investment.

The first plant in America to use the next-generation silicon standard ultraviolet lithography is being sought by people who do not recognize talking about domestic agreements. When asked about plans for the US facility, Samsung said in an email that it had not yet made that decision.

The world’s largest tech companies, such as Microsoft, Google, and Amazon, are increasingly designing their own chipsets for datacenters. Since they do not have their own foundry, they need to work with a partner such as TSMC or Samsung. Samsung has a manufacturing base in the US to receive and accept orders from these Titans in the industry.

TSMC builds its own $12 billion chipmaking plant in Arizona. It is expected to reach online by 2024. Samsung currently has a facility in Austin, but can only run older processes. Samsung currently has only two EUV plants. One is at a major chip factory in Hwaseong, and the other is built-in Pyeongtaek, South Korea.

In October last year, Samsung’s US division bought the space next to Fab. Samsung has requested the Austin City Council to allow land to be reused for industrial development. The report said that Samsung was intent to move forward with the deal, despite not receiving much encouragement from the government.

Samsung is serious about becoming the biggest member in the industry. That means getting relieved of TSMC is not that easy. Lee Jae-Yong, Samsung’s vice chairman and actual successor, said the company would invest $116 billion over the next ten years.