Samsung's US Chip Plant Costs Surge By $8B As Inflation Bites - Samsung Electronics Co (OTC:SSNLF)

Samsung Electronics Co, Ltd's SSNLF Taylor, Texas chip plant will cost over $25 billion, up more than $8 billion from initial forecasts.
Inflation led to the surge in the cost, Reuters reports citing familiar sources.
Any delay in the construction will further drive the costs up. The higher construction cost is about 80% of the cost increase.
Also Read: Samsung Earmarks $229B To Cement Korea's Chip Building Position As US - China Intensifies
The U.S. grants will only cover up to 15% of the cost of new plants.
Under the CHIPS Act grants, only $39 billion is available for direct investment in plant construction. At the same time, the cost of labor has risen sharply, along with the price of construction materials like steel. The rising costs could push up the cost of substantial spending plans.
Taiwan Semiconductor Manufacturing Company Ltd TSM, Intel Corp INTC, and Micron Technology, Inc MU have voiced their ambitious investment plans for the U.S.
Reportedly, Samsung is rushing to finish the plant by 2024 to produce chips by 2025, which would put the company ahead of a 2026 deadline to secure investment tax credits on tools for the factory.
Samsung had already spent as much as half of the $17 billion initially projected for the Taylor site and might eventually build additional factories.
Photo by Pierre Lecourt via Flickr