Samsung Electronics Chooses US Tailor... Investing 20 Trillion Won to Build Foundry Plant (Comprehensive)

Construction to Start in First Half of Next Year, Mass Production to Begin in Second Half of 2024
"Comprehensive Consideration of Semiconductor Ecosystem and Cooperation with Local Governments"

[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 ever investment 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 various aspects such as synergy with the existing Austin production line, semiconductor ecosystem and infrastructure supply stability, cooperation with local governments, and community development." Construction is scheduled to begin in the first half of next year, with mass production starting in the second half of 2024.

Industry insiders expect that advanced processes of 5nm (nanometer; 1nm is one-billionth of a meter) or below will be carried out at this plant. The new line will apply advanced foundry processes to produce cutting-edge 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 the AI, 5G, and metaverse-related semiconductor sectors.

Samsung’s Taylor plant will become the company’s 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 two decades, Samsung is building its second semiconductor plant in the U.S. This 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."

The new Taylor City line, along with Pyeongtaek Line 3, is expected to serve as a core production base for Samsung Electronics to achieve its ‘System Semiconductor Vision 2030.’ Samsung believes that this line construction will strengthen the global system semiconductor production system, enabling rapid response to customer demand and securing new customers. Additionally, it is expected to contribute to the stabilization of the global semiconductor supply chain and, in the long term, expand the capacity to respond to various new advanced system semiconductor demands, thereby accelerating the Fourth Industrial Revolution and advancing next-generation IT industries.

Greg Abbott, Governor of Texas, said regarding Samsung Electronics’ investment decision, "Samsung Electronics’ new Taylor semiconductor production facility will provide numerous opportunities for residents and families in central Texas and play an important role in continuing Texas’s outstanding semiconductor industry competitiveness," adding, "We look forward to expanding our partnership so that Texas can become not only a leader in advanced technology fields but also a dynamic economic powerhouse."

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

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