Samsung, Selected by US Tailor, Advances Toward 'System Semiconductor 2030' Goal

Samsung to Invest in US 2nd Foundry Plant in 'Taylor City'
Strengthening Global Semiconductor Production System in 'Giheung, Hwaseong, Pyeongtaek - Austin, Taylor'
Establishing Market Dominance to Achieve 'System Semiconductor Vision 2030'

At a press conference held on the 23rd (local time) at the Texas Governor's Mansion regarding the selection of the Samsung Electronics foundry plant site, Texas Governor Greg Abbott (left) and Samsung Electronics Vice Chairman Kim Ki-nam are shaking hands. Photo by Greg Abbott

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics confirmed Taylor City in Texas, USA as the site for its second foundry (semiconductor contract manufacturing) plant on the 24th, strengthening its global production system connecting domestic semiconductor production bases in Gyeonggi’s Giheung, Hwaseong, and Pyeongtaek with Austin and Taylor in the United States, advancing toward the goal of becoming the ‘Global No.1 in System Semiconductors by 2030.’ Lee Jae-yong, Vice Chairman of Samsung Electronics, who revealed the determination of the ‘New Samsung’ beyond the super-gap, is expected to accelerate the management clock based on his wide-ranging activities during his business trip to the U.S. and actively engage in fostering domestic and overseas semiconductor systems and ecosystems.

Lee Focuses on Global Semiconductor Supply Chain

Samsung Electronics plans to utilize the new Taylor line along with Pyeongtaek Line 3 as a core production base to achieve Samsung Electronics’ ‘System Semiconductor Vision 2030.’ Since many global major fabless companies are located in the U.S., Samsung is expected to expand production capacity in Taylor alongside the existing Austin plant to quickly respond to customer demand and focus on securing new customers. Following Vice Chairman Lee’s visit to the U.S. and the investment confirmation news, the White House and the Texas state government welcomed Samsung Electronics’ production facility investment news and showed active support intentions, which is expected to lay the groundwork for dominating the foundry market.

The U.S. White House welcomed Samsung’s investment news and stated, “We will do more to ensure that the United States remains the most innovative and productive country on Earth,” adding, “We will utilize all available tools and invest all resources to strengthen manufacturing and technology.” Texas Governor Greg Abbott also said, “We look forward to expanding our partnership so that Texas can become a leader in advanced technology and a dynamic economic powerhouse.” Taylor City, where the factory will be built, has agreed to provide $1 billion in tax incentives over the next 20 years.

Samsung Aims to Dominate Foundry Market with Advanced Technology

The industry expects that advanced processes of 5 nanometers (nm; 1 nm is one-billionth of a meter) or below will be carried out at the Taylor plant. Currently, Samsung Electronics’ foundry stands shoulder to shoulder with Taiwan’s TSMC, the industry leader, at the forefront of technology. Although Taiwan’s TSMC holds a 52.9% market share in the foundry industry compared to Samsung Electronics’ 17.3%, Samsung is expected to surpass TSMC in the development speed of ultra-fine process technology below 3 nanometers, anticipated in the first half of next year. As demand for semiconductors manufactured with advanced processes continues to grow, Samsung is expected to focus on expanding its market share by combining technological prowess with production capacity.

Vice Chairman Lee has emphasized technological competitiveness as part of his plan to become number one in the rapidly growing system semiconductor market since 2019. His directive has been to secure future-utilizable, long-term, and fundamental technologies. In January this year, he personally inspected the construction site of Pyeongtaek Plant 3, where he showed strong determination for nurturing next-generation technologies by stating, “We must secure fundamental technological competitiveness through continuous investment even in times of crisis.” Lee also visited and communicated directly with ASML, a Dutch manufacturer of extreme ultraviolet (EUV) lithography equipment, a core device used in advanced processes, dedicating efforts to securing technological capabilities.

Samsung Accelerates Management Clock... Increased Domestic Investment

Since Vice Chairman Lee returned to management after parole in August, Samsung Electronics’ management clock has been accelerating. Along with this investment, Samsung Electronics has set the goal of becoming the world’s number one in system semiconductors by 2030 and plans to continue large-scale investments not only in the U.S. but also domestically.

In August, Samsung Electronics announced a massive investment plan of 240 trillion won and employment of 40,000 people, increasing its system semiconductor investment from the previous 133 trillion won to 171 trillion won by 2030. Following the U.S. investment, Samsung plans to steadily continue domestic investments centered on Pyeongtaek, considered Samsung’s semiconductor ‘home base.’ Samsung’s foundry production bases currently include domestic sites (Giheung, Hwaseong, Pyeongtaek) and Austin in the U.S., while advanced research and development (R&D) facilities for next-generation semiconductor development are concentrated domestically, centered on the Hwaseong Device Solution Research (DSR) building.

Through domestic and overseas investments, Samsung is expected to create a large number of jobs. According to the state of Texas, the investment in Taylor City is expected to create more than 2,000 high-income jobs locally and thousands of indirect jobs, with at least 6,500 construction-related jobs anticipated. Samsung Electronics has also announced plans to directly hire 40,000 people over the next three years, focusing on advanced industries domestically, and the large-scale investment is expected to generate employment effects for 560,000 people.

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