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Samsung Nominates Austin For $17B Plant To Drive U.S. Chip Production

· 02/05/2021 13:07
  • Samsung Electronics Co Ltd (OTC: SSNLF) has shortlisted Austin, Texas, for a new $17 billion chip plant, which could create 1,800 jobs, reported Reuters.
  • It expects to build 7 million square feet (650,000 square meters) of new space on a 640-acre (259-hectare) site owned by the company in a bid to expand its chip facilities. Samsung has an existing computing chip plant in Austin.
  • Samsung aims to produce the smallest and fastest kinds of computing chips for customers.
  • The plant could become operational by the third quarter of 2023.
  • It sought tax reductions of $805.5 million over 20 years from Travis County and Austin.
  • Samsung’s alternative sites in the U.S. include Arizona and New York.
  • Tesla Inc (NASDAQ: TSLA), Qualcomm Inc (NASDAQ: QCOM), and Nvidia Corp (NASDAQ: NVDA) fall amongst Samsung’s U.S. customers for its contract manufacturing chip business.
  • U.S. Senator Charles E. Schumer has assured federal incentives for Samsung’s factory in New York to drive their local chip production versus China.
  • Most U.S. semiconductor companies except Intel Corp (NASDAQ: INTC) have outsourced their chip production to Taiwan Semiconductor Manufacturing (NYSE: TSM) and Samsung, whose facilities are outside the U.S.
  • Apple Inc’s (NASDAQ: APPL) major chip supplier TSM already disclosed plans for a $12 billion chip plant in Arizona to come online by 2024.