South Korean tech giant Samsung Electronics is mulling over setting up a new 17 billion dollars chip plant in Austin, Texas. The company claims that the chip plant will create almost 1,800 employment opportunities in the region. According to the documents filed with the Texas Authorities, the company has proposed for tax benefits of $805.50 million over 20 years. Samsung has stated in the filing that if Austin is selected for the chip plant, the company will begin the construction work by the middle of the year and the plant itself would be ready to operate by third quarter of 2023. According to the company the construction of the new 7 million square feet chip plant would be developed on 640 acre of land which is already owned by it.
The company is also venturing alternative locations in the US and Korea
The company says that the chip plant project is highly competitive and it is looking at alternative locations in US like Arizona and New York and even at South Korea. For selecting the site, the company is looking at various aspects such as access to talent, chip ecosystem and marketing. It may be noted that Samsung semiconductor supplies chip to some of the major industries in the United States which include Tesla, Qualcomm and Nvidia. The company claims in the file submitted to Texas Authorities that the new chip plant would produce the fastest and smallest computing chips in the world.
Politics will play a key role in the final decision making by Samsung
Samsung has also promised on expanding the capacity of its existing chip plant located in Austin however no details has been provided by the company on how the expansion process will start. Another chip manufacturing company, Intel, is already operating in the US however most of the contract manufacturers who make the chips for outside clients such as Samsung and Taiwan Semiconductor Manufacturing Company maintain most of their facilitation centers in Korea and Taiwan respectively. According to the media reports, U.S Senate Charles Schumer has invited the company to set up the chip plant in his home city New York to compete with China and boost the economy of US. Looking at this scenario it seems that political consideration will play a major factor in the final decision by Samsung.