Samsung has chosen a small city new Austin for its new U.S. chip factory, according to reports by The Wall Street Journal and Bloomberg, a major step toward rebuilding the U.S. chip industry.
Both the Trump and Biden administrations had actively courted the South Korean company, hoping to reduce the nation’s reliance on semiconductor manufacturing overseas and prevent future supply chain problems tied to chip production.
Computer chips are now standard components in everything from cars to home appliances to toys. So an ongoing shortage of electronic components has been a central factor in the product shortage and inflationary spiral that has beset the U.S. economy in the pandemic’s wake.
Oregon has among the nation’s densest concentration of semiconductor factories, known as fabs. But the state doesn’t appear to have been in contention for Samsung’s new plant, or for a big new fab TSMC is building in Arizona, or for two new fabs Intel is building near Phoenix.
Samsung already has a fab in Austin. Its new facility in Taylor, about 30 miles away, would be considerably larger. The Wall Street Journal said Texas is offering incentives to Samsung that include a property exemption of more than 90%.
Samsung hadn’t formally announced its plans Tuesday morning but Texas Gov. Greg Abbott planned an “economic announcement” late in the afternoon.
Advanced chipmaking is currently concentrated in geopolitically sensitive areas – Taiwan and South Korea, primarily. The U.S. chip industry is eagerly anticipating $50 billion in federal subsidies, now before Congress, ahead of a potential boom in domestic semiconductor production.
Although Oregon offers tax breaks comparable in size to what Samsung will receive in Texas, the state doesn’t have the huge parcels of readily available industrial land that Texas and Arizona offer. Samsung’s new Texas factory is set for a 1,200-acre site, reports said.
Intel is continuing to grow in Oregon, though, planning to open a $3 billion expansion of its D1X research fab in Hillsboro early next year. And new CEO Pat Gelsinger told The Oregonian/OregonLive this spring that Intel will build more Oregon factories eventually.
-- Mike Rogoway | mrogoway@oregonian.com | twitter: @rogoway | 503-294-7699
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November 23, 2021 at 11:11PM
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Samsung plans $17 billion chip factory in Texas, reports say - oregonlive.com
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