Samsung proposes $191B Texas semiconductor project


Dive Brief:

  • Samsung, the South Korea-based electronics company, has begun applications for tax breaks on 11 potential chip plants worth about $191 billion in Texas. The company already operates two factories in Austin, Texas.
  • The proposed factories in Taylor, Texas, a city about 30 miles from Austin, would be up and running by 2034 at the earliest, with others planned to break ground after 2040, according to local news outlet Community Impact.
  • The filings do not commit Samsung to invest however, reports the Wall Street Journal. Like other major semiconductor projects in the pipeline, a critical factor for this potential investment by Samsung is the passage of the CHIPS Act, which is currently under consideration by Congress.

Dive Insight:

The proposals signal a continued push from the tech giant to expand its semiconductor market share in the U.S.

The electronics giant recently tapped Mississippi-based Yates Construction as general contractor to build its $17 billion chip plant in Taylor.

But Samsung’s investment to bring 11 additional chip plants worth close to $200 billion to Texas hinges on the success of the passage of the CHIPS Act. The Senate is scheduled to hold a final vote this week, reports the Washington Post. The facilities are expected to generate about 10,000 jobs in the area, with approximately 1,800 positions in Austin and the remaining 8,200 in Taylor.

U.S. Commerce Secretary Gina Raimondo in a statement Thursday urged Congress to pass the CHIPS Act.

“Once again, chipmakers are making it clear that significant investments in American jobs are contingent on Congress’ ability to pass the CHIPS Act now,” said Raimondo in the statement. “Samsung’s investment would be transformational for America’s domestic chip manufacturing industry, create thousands of good paying jobs and secure our ability to lead the world in 21st century innovation.”

Texas Gov. Greg Abbot also praised the potential investment in a statement released Wednesday.

Starts in the manufacturing sector in June dropped 14%, as project owners became spooked by the potential of recession in an era of rising interest rates and continued volatility in materials prices. Over the last 12 months ending May 2022, manufacturing construction starts reached a record $41.6 billion. That’s 161% more than the 12 months ending May 2021, according to Dodge Data & Analytics.



Source link

We will be happy to hear your thoughts

Leave a reply

RigalShop
Logo
Enable registration in settings - general
Compare items
  • Total (0)
Compare
0
Shopping cart