Samsung Electronics Confirms Taylor City as Location for 2nd US Foundry Plant (Update)

Confirmed Announcement via Public Notice on the 24th... 'Trip to the US' Lee Jae-yong Returns Today
Kim Ki-nam: "It Will Be a Foundation for Preparing a New Future"

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics has selected Taylor City in Texas as the site for its second U.S. foundry (semiconductor contract manufacturing) plant. Strengthening synergy with the first Austin plant as a core base for advanced processes, Samsung plans to enhance its global system semiconductor production system connecting 'Giheung/Hwaseong-Pyeongtaek-Austin/Taylor,' taking a step closer to achieving its 'System Semiconductor Vision 2030' goal.

On the 24th, Samsung Electronics announced that it will invest $17 billion (approximately 20 trillion KRW), the largest investment ever in the U.S., to build a foundry plant in Taylor City. Samsung stated, "We have completed consultations with Taylor City, Texas, and others regarding the new foundry line investment," adding, "The selection was made after comprehensively considering synergy with the existing Austin production line, semiconductor ecosystem and infrastructure supply stability, cooperation with local governments, and regional community development." Construction is scheduled to begin in the first half of next year, with mass production starting in the second half of 2024.

This plant is expected to implement advanced processes of 5 nanometers (nm; 1 nm is one-billionth of a meter) or below. The new line will apply cutting-edge foundry processes to produce advanced system semiconductors for various fields such as 5G, HPC, and artificial intelligence (AI). Samsung explained that it expects to smoothly provide advanced fine process services to global system semiconductor customers leading in AI, 5G, and metaverse-related semiconductor sectors.

Samsung Austin Factory Overview

Samsung’s Taylor plant will become its second semiconductor production base in the U.S. Samsung Electronics decided to build its first U.S. foundry plant in Austin, Texas, in February 1996, started construction at the end of March the same year, and completed it in 1998, operating the plant for over 20 years. After more than 20 years, Samsung is building its second semiconductor plant in the U.S. It also comes six months after Samsung Electronics Vice Chairman Kim Ki-nam announced the $17 billion investment plan during the Korea-U.S. summit in May.

Samsung Electronics Vice Chairman Kim Ki-nam said, "This year marks the 25th anniversary of Samsung Electronics’ semiconductor entry into the U.S., and the confirmation of the new semiconductor line investment in Taylor City will be a cornerstone for preparing a new future," adding, "Through the new line, we will contribute not only to stabilizing the global semiconductor supply chain but also to job creation, talent development, and the advancement of local communities."

This investment decision came three months after Samsung Electronics Vice Chairman Lee Jae-yong was released on parole on August 13. Lee, who traveled to the U.S. for the first time in five years, completed a busy ten-day schedule and is returning home this afternoon. Having finalized the large-scale investment, Lee is expected to actively pursue system semiconductor market share starting with the U.S. plant. After completing internal reorganization through executive personnel changes this year, he is anticipated to embark on creating the 'New Samsung' in earnest.

This content was produced with the assistance of AI translation services.