Even the US Democratic House Leader Sends 'Love Call' to Samsung Semiconductor Plant... Growing Interest in New and Expansion Investments

(Photo by Samsung Electronics Austin Factory Facebook)

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[Asia Economy Reporter Jeong Hyunjin] As reports continue that Samsung Electronics is considering expanding its semiconductor factory in the United States, there have been continuous 'love calls' from the U.S. to attract Samsung. With expectations of securing jobs at a large-scale factory, places like Austin and New York are reaching out, but Samsung Electronics still maintains the position that "nothing has been decided yet."

According to the office of Chuck Schumer, the U.S. Senate Majority Leader from the Democratic Party, on the 29th (local time), Schumer recently contacted senior Samsung Electronics officials and expressed his desire for Samsung Electronics to build a semiconductor factory in his constituency, New York State. Schumer stated, "Samsung's project would be a very exciting and potentially game-changing development for this area," and added, "I strongly support the plan to build a semiconductor chip fab in Genesee County that will employ 1,900 workers."

Schumer also emphasized, "The world-class workforce in western New York, combined with significant experience in semiconductor manufacturing and research and development (R&D), makes it an ideal location for Samsung's new facility," and stressed that he is ready to assist Samsung. He further mentioned his efforts to promote the 'CHIPS' Act, a support measure to attract overseas semiconductor factories to the U.S., and the Foundry Act to expand U.S. semiconductor manufacturing facilities, noting that Samsung relies on these initiatives in the U.S.

Schumer's actions come amid recent reports that Samsung Electronics is establishing or expanding semiconductor factories in the U.S. Bloomberg News reported on the 21st that "Samsung Electronics is considering investing more than $10 billion (about 11 trillion KRW) to build a semiconductor factory in Texas," and that "Samsung is discussing establishing a factory in Austin capable of manufacturing 3-nanometer chips in the future." The next day, on the 22nd, The Wall Street Journal (WSJ) also cited sources reporting that "Samsung Electronics is considering a $17 billion investment to build a semiconductor factory in Arizona, Texas, or New York."

Following these reports, Greg Abbott, Governor of Texas, linked a local media article on his Twitter on the 23rd about Samsung Electronics considering a $10 billion semiconductor factory in Texas, stating, "No contract has been signed yet, but this is another example of Texas's potential for economic growth," and added, "Texas led the U.S. economy in 2020 and had a strong start in 2021."

Additionally, on the 25th, KP George, Chief Executive of Fort Bend County, Texas, reportedly sent an open letter to Kim Ki-nam, Vice Chairman of Samsung Electronics, stating, "Texas is a business-friendly area with no corporate or personal income tax. It has advantages such as a highly skilled workforce, infrastructure, and deregulation," according to local foreign media. He added, "Fort Bend County is currently an attractive destination for major IT companies such as Amazon, Dell, Tesla, and HP, making it an ideal hub for business operations." KP George also welcomed Samsung with open arms via his personal Twitter.

However, despite these love calls, Samsung Electronics maintains its position that "nothing has been decided yet" regarding new semiconductor factory investments in the U.S. Hanjinman, Vice President of Samsung Electronics' Memory Business Division, recently explained during the Q4 and annual earnings conference call, "Due to the nature of the foundry business, expanding production capacity to quickly respond to customer demand is something we constantly review," and added, "We are reviewing sites across all regions including Giheung, Hwaseong, Pyeongtaek, and Austin in the U.S."

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