In May 2022, Samsung announced the construction of a new semiconductor plant in Taylor, Texas, USA, with an initial investment of $17 billion. However, as the project progressed to the equipment procurement stage, the investment amount increased to $25 billion. This year, Samsung further raised the investment to $44 billion, nearly doubling the initial figure. The existing Samsung semiconductor plant in Austin, USA, which was only advancing to the 14nm process, will progress to the 4nm process with the addition of EUV lithography equipment.
According to ETnews, Samsung has delayed the equipment procurement orders for the new semiconductor plant in Taylor, deciding to make a final decision only in the third quarter of 2024. As market demands for artificial intelligence (AI) hardware continue to grow, Samsung aims to upgrade its process from 4nm to 2nm to better compete with TSMC and Intel.
Samsung plans to establish a comprehensive advanced manufacturing ecosystem in Taylor, including two semiconductor plants, a research and development facility focused on technologies preceding the current production nodes, and an advanced packaging facility for 3D high-bandwidth memory and 2.5D packaging. The first semiconductor plant is scheduled to start production in 2026, the second in 2027, and the R&D facility will also be operational in the same year. Over the coming years, Samsung is expected to invest more than $40 billion in Taylor and the Austin area, creating at least 21,500 jobs.
The U.S. Department of Commerce announced this year that it has signed a non-binding Preliminary Terms Memorandum (PMT) with Samsung, which will provide approximately $6.4 billion in direct grants under the CHIPS Act. The subsidy amount for Samsung under the CHIPS Act is second only to Intel ($8.5 billion) and TSMC ($6.6 billion). However, unlike Intel and TSMC, Samsung did not receive loans and guarantees under the CHIPS Act, whereas Intel and TSMC received $11 billion and $5.5 billion in loans, respectively.
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