What you need to know
- Samsung could invest almost $200 billion in a massive chip manufacturing project in Austin, Texas.
- The phone maker seems to be planning to build 11 semiconductor chip factories in the area.
- The plan is expected to create over 10,000 jobs if it fulfills the entire project.
Samsung has been shelling out large sums of investments in Texas over the past few months. After unveiling its plans to build a $17 billion semiconductor factory in Taylor, the tech giant now appears to be in the process of building 11 more chip plants in Austin City.
According to Austin Business Journal, Samsung's plan could lead to an investment of nearly $200 billion over two decades, assuming it fulfills the entire project. The plan could also result in the creation of over 10,000 new jobs in Austin.
Samsung has filed 11 applications in Texas, where it's seeking tax breaks potentially amounting to $4.8 billion for the construction of the chip factories, if all applications are approved.
Two factories will apparently be built in the Austin area, where Samsung may invest $24.5 billion in the project that could potentially create 1,800 jobs. The rest of the plants could rise in Taylor with a potential investment of about $167.6 billion. Those projects could employ around 8,200 individuals.
If Samsung follows through on all of its plans, the first of those sites will begin operations in 2034, while two of those plants will not be operational until 2042, according to the filing.
The latest development signals Samsung's growing intent to catch up to TSMC, whose manufacturing process is used to build the chips powering many of the best Android phones. TSMC is also ramping up investments in the United States. In April, the Taiwanese chip giant raised $3.5 billion in bonds for a new plant in Arizona.
However, because Samsung's plans aren't finalized yet, it's possible that not all of the proposed chip factories will be built. If some of Samsung's applications are scrapped, it's possible the company could modify or build those plants elsewhere.
