Samsung to Texas..a giant factory to produce chips that the world needs

At a time when the crisis in the production of electronic chips is causing the prices of cars, computers, and other products to rise in the United States and the world, the American Wall Street Journal said that Samsung Electronics plans to build a chip factory, worth approximately $ 17 billion, in Taylor, Texas, USA

The newspaper quoted people it described as insiders as saying that an announcement to this effect may be issued as early as Tuesday, as the state’s governor, Greg Abbott, is scheduled to issue an “economic announcement” on the same day, which may be to highlight the project.

The newspaper said that the Taylor city plant plans to create about 1,800 jobs, knowing that it is not expected to start producing the chips until the end of 2024, according to documents submitted by Samsung to the Texas authorities.

To attract the giant, the city has offered incentives that include property tax exemptions of up to 92 percent of the value of the tax for the first ten years.

A Samsung spokeswoman said that “a final decision has not yet been made on the (exact) location” of the plant.

A global chip shortage has undermined many industries from smartphones and home appliances to cars.

Samsung, the world’s largest semiconductor maker by revenue, plans to invest more than $205 billion over the next three years, prioritizing making chips.

Boosting US production of chips has been a priority for both the Biden administration and Congress, which has put in place legislation to provide funding to stimulate investment in the United States.

And in June, the Senate approved $52 billion in direct industrial subsidies for new factories for the semiconductor industry, though the House has yet to take action.

The US has fallen behind in semiconductor manufacturing, accounting for just 12% of global production capacity in 2020 — down from 37% in 1990, according to the Semiconductor Industry Association.

China, Taiwan and South Korea became larger production centers for computer chips, which lawmakers came to view as a critical resource for national security and economic growth.

Before Texas, Samsung had previously “explored” locations in Arizona, New York and Florida, according to people familiar with the matter who spoke to the Wall Street Journal.