Samsung is entering Texas with their plan to build a $17 billion chip factory located near Austin. Samsung hopes this will help the global chip shortage. If you don’t know by now, the chip shortage has been felt everywhere and has caused a decline in phone sales.
The government has stated that this is to be the largest foreign investment for Texas ever. Samsung is set to begin the construction of this chip factory in 2022 and it should be fully operational by 2024. Texas location was carefully selected due to a number of factors including the number of industrial plants currently operating near Austin.
Samsung isn’t the only company to try and expand its factory operations due to the chip shortage. Many chipmakers have been attempting to improve the output of chips. This shortage has been felt in just about every industry that includes some type of technology. This includes video gaming, mobile, computers, automotive, and more.
Samsung is expected to pay over 17 billion on this Texas plant, this is hands down the biggest investment in the United States for the South Korea-based company. The company also looked at options in Arizona and New York for its new chip factory.
Most chip factories have been operating outside of the U.S since the 1990 peak of 37% of all chips being produced in the United States. That number is now roughly 12% with most factories operating in Asian countries that have fewer worker protection laws.
Another reason Samsung decided it would produce in Texas is that they were offered tax breaks if they built the factory within a school district in Taylor. This also came with incentives from Williamson County to create more jobs in a rural area between Taylor and Hutto. It is said to employ over 2,000 people creating new jobs in the area.