The US state of Texas will become a center of the chip industry in the coming years due to a mega investment from Samsung. The South Korean chipmaker wants to allocate 191 billion dollars (188 billion euros) to the construction of eleven new large chip factories around the cities of Austin and Taylor.
It is one of the largest investments ever made by a foreign company in the US. Samsung already has a chip factory in Austin and is the largest employer in the region, the local newspaper reports Austin American Gazette. Samsung ($213 billion in revenue) has already started building a new factory in Texas, an investment worth $17 billion. Eleven new factories, to be built over the next twenty years, would create 10,000 additional jobs. Samsung has not yet committed itself to the investment of 191 billion, but wants to claim possible tax benefits with the announcement.
Earlier, the Dutch chip manufacturer NXP also announced The Wall Street Journal to expand its Texas factory, an investment of approximately $1 billion.
The US wants to become less dependent on chip production in Asia (especially Taiwan) and encourage manufacturers to build American factories. The aim is to take the wind out of the sails of the fast-growing Chinese chip industry.
shopping
Chip manufacturers can now ‘shop’ in search of regions with the best business climate. In the US, a plan is in place to provide $52 billion in subsidies for the development of the US semiconductor industry. This ‘CHIPS Act’ – the abbreviation stands for Creating Helpful Incentives to Produce Semiconductors – appears to be finally approved by Congress next week after years of wrangling. The American chip manufacturer Intel, which is building two large factories in the state of Ohio, has already demonstrated the construction work quiet to force a deal for the CHIPS Act.
In order to avoid future chip shortages, the European Union also wants to produce more semiconductors within its own borders. The EU approved a €43 billion stimulus plan for the chip sector at the beginning of this year. In that context, Intel $6.8 billion for the construction of a 20 billion dollar factory in Magdeburg, Germany.
Samsung’s expansion plans will also provide additional revenue for ASML, the Dutch manufacturer that has absolute market power when it comes to the most advanced lithography machines. Last month the top of Samsung in Veldhoven visited and pre-ordered the latest generation of lithography machines – devices that cost 400 million euros each and will be delivered from 2024. TSMC and Intel have also ordered such machines.
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