Samsung to double investment in Texas chip plant to $44 billion
![Flags of the United States, Korea, Texas and Samsung wave in front of the Samsung Electronics semiconductor chip plant in Taylor, Texas, on Jan. 2.[EPA/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2024/04/07/3489bad0-125d-4446-b5df-374fe7cb8e34.jpg)
Flags of the United States, Korea, Texas and Samsung wave in front of the Samsung Electronics semiconductor chip plant in Taylor, Texas, on Jan. 2.[EPA/YONHAP]
Samsung Electronics will reportedly more than double the investment in its chip production facility in Taylor, Texas, to $44 billion.
According to a Wall Street Journal report citing multiple unnamed sources, the chip giant plans to ramp up the investment related to the upcoming semiconductor hub in Taylor that was initially announced in 2021 with an estimated budget of $17 billion. Ground was broken in 2022.
The expansion plan is likely to be announced on April 15 in Texas, according to the report.
Samsung Electronics did not confirm the report, saying that "the negotiation process with the U.S. authorities has not been completed."
The Taylor plant is expected to begin mass production this year. The additional $27 billion will be used cover construction expenses for the hub’s first chip-making plant, which has increased due to inflation, as well as costs for the second plant.
The second chip plant will likely cost over $20 billion, according to the Wall Street Journal.
The Korea JoongAng Daily reported in November that Samsung Electronics will add a 2.7 million-square-foot building to its Taylor project.
The latest development comes in the chip maker is expected to receive a subsidy of over $6 billion from the U.S. government under the CHIPS Act program. This is the largest grant provided to a non-American company under the program, which is aimed at bringing cutting-edge semiconductor production capabilities into the United States as it seeks to wean itself off Chinese technology.
In March, Korea’s Trade Minister, Cheong In-kyo, said that “we expect the U.S. government to soon announce details on chip subsidies for Korean companies,” during his visit to the United States.
“We are certain at this point that the subsidy will be provided, but the exact amount of the subsidy remains to be seen,” said Cheong.
BY SHIN HA-NEE [shin.hanee@joongang.co.kr]
with the Korea JoongAng Daily
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