Samsung plans to build a $17 billion chip plant in Texas

Samsung is planning to build a $17 billion semiconductor factory in Taylor near Austin, Texas, over the next three years as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage.

The South Korean tech giant announced the 5 million square meter facility Tuesday, a day after The Wall Street Journal broke the news.

The factory will aim to help boost production of advanced logic semiconductors, which are used in phones and computers.

“Like other chipmakers, Samsung badly needs more capacity,” Glenn O’Donnell, vice president and research director at analyst firm Forrester, told CNBC Tuesday. “It is following Intel, TSMC and others to build more production.” 

Samsung said it expects building work to commence in the first half of 2022 and it hopes to have the site in operation by the second half of 2024.

The total expected investment of $17 billion will be the largest investment Samsung has ever made in the U.S. The figure includes buildings, property improvements, machinery and equipment.