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.
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“As we add a new facility in Taylor, Samsung is laying the groundwork for another important