Samsung plans to build for more than $17 billion chipmaking plant in Austin, 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.

Last month, it was reported that Samsung is reportedly considering investing $10 billion in a new chipmaking plant in Austin, Texas, USA.

As per the Austin American-Statesman report, the world’s largest memory chipmaker has requested authorities in Texas to grant tax abatements over 20 years, which would be worth a total of $805.5 million, for its new $17 billion chip facility in Austin.

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Austin, the globe’s biggest 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.

Samsung will begin production in the second quarter of this year and the new facility around 1800 could be operational in the fourth quarter of 2023 as Austin is selected as the site for the new chip plant.

Samsung plans to beat TSMC

Samsung is serious about becoming the biggest member in the industry. 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 production by 2023. Samsung’s plans to bankroll the project would cost more than $10 billion despite fluctuations in investment.

The company manufactures chips based on key processes such as 7nm and 5nm in South Korea. The current S2 line in Texas produces 14nm and 11nm chips, which are not modern. However, the Samsung Foundry has sufficient customers in the US, including IBM, Nvidia, Qualcomm, and Tesla, which means it can set up in the country for those clients.

Though, the world’s largest tech companies, such as Microsoft, Google, Amazon, and, other companies 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.

|Via|