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Samsung choses Austin for $17bn 3nm fab

Business news |
By Nick Flaherty


After looking at other location in the US for a new leading edge fab, Samsung Electronics has chosen to stay close to its existing operations in Austin, Texas for a $17bn fab for making 3nm chips.

This follows Intel breaking ground on a site for multiple fabs in Chandler, Arizona, and Texas Instruments announcing plans for at least two 300mm fabs on a site just north of Dallas, Texas.

The facility in Taylor, Texas, is on the outskirts of Austin and will manufacture products based on advanced process technologies for application in areas such as mobile, 5G, high-performance computing (HPC) and artificial intelligence (AI).

The company will start work on the site in the first half of 2022 with the target of having the facility operational in the second half of 2024. This implies starting with a 3nm capability with a view to 2nm production. This would be consistent with the $17bn investment in the building, infrastructure and equipment, but the company has not said whether there will be multiple fabs on the site.

The location will allow Samsung to share skilled staff with its nearby fab and attract staff from Infineon and NXP who also have fabs nearby.

The Taylor site will span more than 5 million square meters and is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity along with its latest new production line in Pyeongtaek, South Korea.

However the increase in fab building is likely to contribute to over-capacity in the market in 2024 and 2025 from the stimulus of the US CHIPS Act intended to boost semiconductor manufacturing after the chip shortages of the last 18 months.

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division (above, right). “With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.”

“In addition to our partners in Texas, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the US,” said Kim. “We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation.”

This is the largest investment made by Samsung in the US and brings the total investment to over $47 billion since beginning operations in the country in 1978, with over 20,000 employees across the country.

 “Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said Texas Governor Greg Abbott (above, centre). “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.”

 

 

The site is expected to create over 2,000 high-tech jobs directly and thousands of related jobs once the new facility is in full operation. As part of its co-investment in the community, Samsung will also contribute financial support to create a Samsung Skills Center for the Taylor Independent School District (ISD) to help students develop skills for future careers as well as providing internships and recruiting opportunities.

www.samsung.com

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