Samsung announces new advanced semiconductor site in Taylor, Texas 

Comment

Image Credits: JUNG YEON-JE/AFP (opens in a new window) / Getty Images

Samsung Electronics announced today it has selected a site in Taylor, Texas, to build a new semiconductor wafer fabrication plant that is set to produce advanced logic devices. 

The estimated $17 billion investment, which will mark the largest investment made by Samsung in the U.S., is expected to create about 2,000 new jobs directly and thousands of related jobs once the new facility is in full operation. The funding will bring Samsung’s total investment in the U.S. to more than $47 billion since beginning U.S. operations in 1978. 

The Taylor site, about 16 miles from Samsung’s current manufacturing site in Austin, is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity along, with its latest new production line in Pyeongtaek, South Korea. 

The new facility will manufacture products based on advanced process technologies such as mobile, 5G, high-performance computing (HPC) and artificial intelligence (AI). 

Samsung’s decision comes amid a global chip shortage that has undermined industries from automobiles to electronics.

The company said it remains committed to supporting customers globally by making advanced semiconductor fabrication more accessible and meeting surging demand for semiconductor products.  

Samsung will start construction on the Taylor site, which will span more than 5 million square meters, in the first quarter of 2022, aiming to have production up and running in the second half of 2024.

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, vice chairman and CEO of device solution division at Samsung Electronics. “With greater manufacturing capacity, we will 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.”

After reviewing multiple locations within the U.S. for a potential manufacturing plant, the decision to invest in Taylor was based on multiple factors, including the local semiconductor ecosystem, infrastructure stability, local government support and community development opportunities. 

Based on media reports, Samsung, which evaluated other locations such as Arizona, New York and South Korea for the new chip plant, picked Texas’ Williamson County because it offered a better tax policy. In July, Samsung Electronics applied for a tax break (from the Taylor Independent School District) to build a chipmaking factory in Taylor, Texas, according to a file submitted with Texas authorities in July. 

“It [Samsung] seeks a strong public partner to support the project through financial and other incentives (e.g., infrastructure and utility assistance). In connection with the project, the company is seeking rebates under Chapter 380 and 381 assistance from the Texas Enterprise Fund. In addition, the company is also pursuing incentives relating to certain infrastructure and utility improvements, rate reductions, and other non-cash benefits to support construction and operations of the proposed project,” as per the document. 

Samsung will also contribute financial support to create a Samsung Skills Center for the Taylor Independent School District (ISD) to help students develop future career skills and provide internships and recruiting opportunities. 

“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said Governor Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry.”

Samsung Group’s de facto leader Jay Y. Lee, visiting North America last week, met with the U.S. government officials in Washington, D.C. to discuss the second chip plant and semiconductor supply chain. Lee also met with other tech firm leaders, including Microsoft CEO Satya Nadella and execs at Moderna and Verizon Wireless, to strengthen their business ties. 

Intel recently broke ground on two new chipmaking plants in Arizona. At the same time, TSMC started constructing a $12 billion chip factory in Arizona and announced its plan to build the first chip plant in Japan in October. Texas Instruments also unveiled its investment plan for four new semiconductor fabrication plants in Sherman, Texas. 

Samsung to invest $205B in semiconductor, biopharma and telco units by 2023, creating 40,000 jobs

White House reportedly in talks with Intel, TSMC to build advanced chip foundries in the US

South Korean chipmakers will submit semiconductor data to the U.S. by Nov. 8 deadline

More TechCrunch

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

OpenAI is removing one of the voices used by ChatGPT after users found that it sounded similar to Scarlett Johansson, the company announced on Monday. The voice, called Sky, is…

OpenAI to remove ChatGPT’s Scarlett Johansson-like voice

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

1 day ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine