What do you want to know
- Samsung could invest nearly $200 billion in a massive chip-making project in Austin, Texas.
- The phone maker appears to be planning to build 11 semiconductor chip factories in the region.
- The plan is expected to create more than 10,000 jobs if it completes the entire project.
Samsung has disbursed large sums of investments in Texas in recent months. After unveiling plans to build a $17 billion semiconductor factory in Taylor, the tech giant now appears to be building 11 more chip factories in Austin City.
According to Austin Business Journal (opens in a new tab), Samsung’s plan could result in an investment of nearly $200 billion over two decades, assuming it completes the entire project. The plan could also create more than 10,000 new jobs in Austin.
Samsung has filed 11 petitions in Texas, where it is seeking tax breaks of up to $4.8 billion for building the chip factories, if all petitions are approved.
Two factories will reportedly be built in the Austin area, where Samsung could invest $24.5 billion in the project that could potentially create 1,800 jobs. The rest of the factories could go up to Taylor with a potential investment of around $167.6 billion. These projects could employ approximately 8,200 people.
If Samsung goes through with all of its plans, the first of those sites will begin operations in 2034, while two of those factories won’t be operational until 2042, according to the filing.
The latest development signals Samsung’s growing intention to catch up with TSMC, whose manufacturing process is used to build the chips powering many of the top Android phones. TSMC is also increasing its investments in the United States. In April, the Taiwanese chip giant raised $3.5 billion in bonds (opens in a new tab) for a new factory in Arizona.
However, as Samsung’s plans are not yet finalized, it is possible that not all proposed chip factories will be built. If some of Samsung’s apps are removed, the company may modify or build those factories elsewhere.
