Samsung Electronics, the world’s leading smartphone maker as well as one of the leaders in the chip manufacturing business, is reportedly all set to start construction of chip plant in the United States in the third quarter of this year.
The U.S. chip plant, which is estimated to cost around $17 billion, is expected to be operational by the year 2024. The report comes through Reuters which has cited a South Korean newspaper as its source.
It adds that Samsung is planning to apply an advanced 5-nanometer extreme ultraviolet (EUV) lithography chip-making process at the plant. While not yet confirmed by the company, the new plant is expected to be in Austin, Texas.
Documents filed with Texas state officials previously showed Samsung is considering Austin as one of the sites for a new $17 billion chip plant. As per the company’s own estimates, it will create around 1,800 jobs.
U.S. President Joe Biden has proposed $50 billion to support chip manufacturing, which has spurred companies like Intel Corp and contract manufacturer Taiwan Semiconductor Manufacturing Co to consider major new investments.
Recently, it was reported that TSMC could be planning to invest tens of billions of dollars for establishing cutting-edge chip factories in the United States, likely in the state of Arizona. As noted above, the moves comes after Joe Biden signed an executive order incentivizing manufacturers to shift base to the United States.
Samsung is the world’s largest memory chip producer and the second largest foundry firm. For the upcoming $17 billion foundry factory in the US, apart from Texas, it is also considering other locations, including Arizona and New York.
It’s noteworthy that the company already has a chip facility in Austin, Texas, but the need for additional U.S. investment emerged after its rival companies have moved ahead for capacity expansions. TSMC has announced that it will invest $100 billion over the next three years for capacity expansion.
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