Texas governor hails Samsung as key to state's lead in chip production, AI

Industry

Published: 10 Jul. 2024, 16:03

Texas governor hails Samsung as key to state's lead in chip production, AI

Texas Gov. Greg Abbott, center, speaks during a news conference held in Seoul on Tuesday. [OFFICE OF THE TEXAS GOVERNOR]

Texas Gov. Greg Abbott expressed optimism that Samsung Electronics' investment will expand the state's rein as the top semiconductor producer in the United States, while also propelling AI technology development.

"I now view [Samsung Electronics] less as a business leader and more as friends," Abbott said in a news conference held in Seoul on Tuesday during his three-day visit to Korea.

"I learned more about how the [chip plant] in Texas is devoted to making wafers dedicated to artificial intelligence. What Samsung is doing is helping Texas achieve what our vision is."

Abbott paid a visit to the Korean electronics giant's Pyeongtaek chip fabrication line on Tuesday, and had a luncheon with Jun Young-hyun, head of the company's chip division.

Samsung has a history of collaboration with Texas, most recently a $17 billion chip plant under construction in the city of Taylor and a plan to expand the investment to more than $40 billion by 2030. The Korean chipmaker is already operating a major plant in the city of Austin as well.

"Texas is already the No. 1 state in the United States for semiconductor production and has been the No. 1 for 10 years," Abbott said.

"What Samsung is going to be doing in Texas will continue to expand Texas' lead in the field of artificial intelligence through the production of wafers in Texas."

The state is emerging as a hub for next-generation technology such as AI and space-related advancements.

Elon Musk's Space X is based in Boca Chica, Texas. The major operations of tech companies like Dell, IBM, Apple and Amazon are also nestled in the area.

The ties between Korean firms and the state are set to expand, with Tuesday's announcement by SeAH Superalloy Technologies of a $110 million investment in Temple, Texas to build a high-performance metal manufacturing facility that is projected to bring over 100 new jobs to the city.

The new facility is expected to produce 6,000 tons of special alloy per year that will be supplied to aerospace, power generation and automotive clients.

Abbott is on a three-nation economic development mission that took him to Taiwan before arriving in Korea. He left for Japan on Wednesday morning.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]