Samsung to build $17 billion chip plant in Taylor, Texas
Samsung will build a $17 billion semiconductor factory in Taylor, Texas, it said Tuesday, giving a major boost to a bipartisan effort in Washington to persuade chip makers in the United States to manufacture more components.
The company’s decision comes after months of deliberations on possible locations in the United States and South Korea. One of the world’s largest manufacturers of computer chips, the company is said to have a site in Austin, about forty minutes from Taylor, as well as locations in Arizona and New York.
As Washington urges chip makers to manufacture more in the United States, cities have raced to get a slice of the potential boom. Taylor tried hard to woo the Samsung plant. The city, its independent school district and surrounding counties promised the company hundreds of millions of dollars in tax breaks. Semiconductor plants required abundant water and reliable power, so they reached a deal to transport water from adjacent counties to the facility.
Samsung’s decision comes during a major shortage of semiconductors, which are critical for products as diverse as the Ford F-150, medical devices and the iPhone.
Lawmakers and the Biden administration have become concerned that the US has not made enough of the critical ingredient. China has invested heavily in encouraging the production of computer chips within its borders, and both Taiwan and South Korea produce a large proportion of semiconductors. Policymakers worry that leaves the United States at a loss for economic and national security.
The plant in Taylor will be the latest plant to be built in the US in recent years. Intel this year began work on two new factories at an existing campus in Arizona. Taiwan Semiconductor Manufacturing Company is also setting up a new plant in the state.
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