The Samsung semiconductor factory under construction in Taylor, Texas, is a large-scale investment project taking place in Taylor.
It is being built in the small city of Taylor, located about 50 km northeast of Austin, and is expected to house advanced semiconductor (foundry) production lines.
Main Investment Background
- Expansion of semiconductor production in the U.S.: As the U.S. moves to strengthen domestic semiconductor manufacturing, several companies, including Samsung, are increasing local facilities.
- Synergy with the Austin factory: Since Samsung already operates a semiconductor factory in the Austin area, it is advantageous to link workforce, partners, and logistics infrastructure.
- Support from local government: The state of Texas and the city of Taylor have provided various supports, including tax benefits, which helped Samsung make the large-scale investment decision.
The investment amount is reported to be about $17 billion (over 20 trillion won), and after the factory is completed, it is expected to create thousands of jobs in engineering and technical positions. The completion date is anticipated around 2024-2025, with a primary goal of producing advanced processes (below 5nm).
In summary, the new semiconductor factory of Samsung Electronics in Taylor, Texas, is expected to enhance semiconductor supply capabilities in the U.S. market by linking with the existing semiconductor business in the Austin area, and positively impact local job creation and economic revitalization.
Latest News
Samsung Electronics' foundry division attempted to attract large clients such as AMD and NVIDIA to the Taylor factory in Texas, but has not achieved results, and it is reported that they plan to operate with a minimal workforce until the end of the year. Consequently, partners who were dispatched to the U.S. to assist with equipment setup are gradually withdrawing due to prolonged uncertainty. A Samsung official, who requested anonymity, stated, "Employees dispatched from Korea to Taylor have been conducting simulations without equipment installation for about two years, so returning to Korea is natural."
The Taylor factory, which began construction in 2022, is one of the key bases of the 'System Semiconductor Vision 2030' announced by Vice Chairman Lee Jae-Yong in 2019. It is a large-scale investment project in the U.S. decided by Samsung after more than 20 years since the Texas Austin factory in 1998, and plans to invest a total of $45 billion (about 62 trillion won) in the U.S. semiconductor sector by 2030.
However, another Samsung official stated, "The Taylor factory is already under construction and is set to receive subsidies from the U.S. government's CHIPS Act, but there are no actual orders, so the production capacity remains sufficient with just the Korean factory." Ultimately, if sufficient foundry orders are not secured even after the factory is completed, there is a high possibility that the Taylor factory will face operational difficulties.