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Samsung Shortlists Three Additional Sites For US Chip Plant Worth $17B: Reuters

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Samsung Shortlists Three Additional Sites For US Chip Plant Worth $17B: Reuters

 

  • Samsung Electronics Co Ltd (OTC: SSNLF) has considered two sites in Arizona and one in New York, each apart from Austin, Texas, for a new chip plant worth $17 billion, Reuters reports.
  • The company raised tax reduction demands from $805.5 million to $1.48 billion over 20 years from Travis County and Austin. The U.S. had assured federal incentives for Samsung’s plant in New York to drive their local chip production.
  • Taiwan Semiconductor Manufacturing (NYSE: TSM) and Samsung gained prominence as the major U.S. semiconductor companies started outsourcing their chip production to them in a bid to become fabless. Things got further intensified by the trade war with China and the pandemic as companies began reducing their dependence on China. Last but not least is the ongoing chip crisis.
  • The top chip companies, including automakers, sought the U.S. government’s assistance to resolve the semiconductor chip crisis.
  • President Joe Biden recently pushed for $37 billion In Congressional funding to tackle the ongoing chip crisis.
  • Samsung has been offered property tax abatement and tax credits to fund infrastructure improvements in Arizona and New York.
  • The new plant is estimated to manufacture cutting-edge logic devices for Samsung’s chip contract manufacturing business, creating 1,800 jobs.
  • Samsung is reportedly exploring multiple expansionary possibilities.
  • TSM also disclosed plans for its Arizona chip plant worth $12 billion slated to come online by 2024.
  • Samsung’s chip plant in Austin is estimated to resume production within a couple of weeks following a shutdown due to a winter storm last month. Samsung, NXP Semiconductors NV (NASDAQ: NXPI), and Infineon Technologies AG (OTC: IFNNFhad to shut down their factories in Texas last month following the winter storm that claimed at least 21 lives and left millions of Texans without power.
  • Image Courtesy: Wikimedia
 

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