Samsung To Build $17B Chip Factory In US State Of Texas

South Korean conglomerate Samsung announced on Wednesday it plans to build a new chip factory in the US state of Texas for an estimated $17 billion.

The new semiconductor manufacturing facility in the city of Taylor "will help boost production of advanced logic semiconductor solutions that power next-generation innovations and technologies," the company said in a statement.

Some of those technologies will include mobile, 5G, high-performance computing, and artificial intelligence, it added.

The new facility will also "contribute to the stability of the global semiconductor supply chain," said Kinam Kim, vice chairman and CEO of Samsung Electronics Device Solutions Division.

The move came at a time when the global economy faces a chip crisis in the post-pandemic period. US President Joe Biden said in February that chip production is a top priority, while his administration and the Congress enacted federal incentives for domestic chip production and innovation.

Groundbreaking for the Texas facility is scheduled for the first half of 2022, and it is planned to start operations in the second half of 2024, according to the statement.

Earlier this year, American chipmaker Intel and Taiwanese semiconductor producer TSMC announced building their chip manufacturing plants in the US state of Arizona. -