Samsung is considering a $10 billion factory in Texas, its most advanced to date in the US.
Samsung is the largest smartphone maker, as well as the largest memory chip maker, but the company lags behind rival TSMC as a semiconductor maker. While Samsung has been working to catch up for some time, there are a number of current factors that could be driving Samsung’s considerations.
US officials have shown increased interest in revitalizing the US semiconductor business. The early days of the pandemic illustrated the potential shortcomings of being so reliant on China and overseas companies for critical tech components, as multiple companies and industries were paralyzed when China went into lockdown. There has also been increased concern over the security implications of relying on China.
As a result, there’s never been a better time to invest in the US semiconductor industry. Adding to the opportunity is Intel’s recent troubles, including its decision to outsource production of some of its chips to TSMC, although Samsung was also part of the negotiations.
According to Bloomberg the company is locking to establish a factory in Austin, one that will eventually be able to fabricate 3 nanometers processors. If the deal moves forward, construction would begin this year, with manufacturing starting as early as 2023. The project could end up costing more than $10 billion.