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USA expansion: Samsung invests up to $44 billion in chip fab in Texas

USA expansion: Samsung invests up to $44 billion in chip fab in Texas

Image: Samsung

There was already a rumor last September, with the figures of the US chips law, now a little more accurate: Samsung is planning more for America. According to the original plans, the amount of investment in Texas was to be almost tripled, although it has already been significantly increased domestically.

At the end of 2021, after many rumors, Samsung decided early to build a new chip factory in the United States, more precisely in a small town called Taylor in Texas, not far from Austin, where Samsung already operates a factory. The initial investment of US$17 billion is part of a typical greenfield investment in a state-of-the-art chip factory. Later, the amount was reportedly increased to US$25 billion due to increased costs, but Samsung is planning something bigger.

Samsung ranked 2nd after Intel

According to the latest reports over the weekend, there is now US$44 billion to be invested in the campus. This is enough for a second factory. The amount mentioned for the second project varies accordingly, depending on the amount of information already available: up to 27 billion USD, as described by some media, seems high, but around 20 billion USD is more realistic, and Wall Street Journal Measured – This would correspond to an increase in the above original capital to US$ 25 billion and the total amount now referred to would be about US$ 44 billion. Samsung's plans to move to No. 2 in the US behind Intel.

As existing synergies with the first fab in Taylor can be used, the second part of the factory should be slightly cheaper and/or able to provide a more modern production level and/or higher capacities. Exactly what will be produced there and in what quantities is still unknown.

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Samsung goes the DSMC route

Computerbase already noticed a few weeks ago and reported that Samsung might actually be doing something else in the US. Because in mid-March Samsung was said to receive up to 6 billion US dollars US CHIPS Act Gotta get, so more than TSMC. Now with a major expansion of about US$44 billion and an existing fab in Austin, the size of Samsung's operations in the US is again significantly greater than TSMC's, which should also result in more funding. TSMC expanded its Arizona campus from one fab to two and plans to invest up to $40 billion. TSMC explained that one factory would not always be profitable and there should be at least two. Samsung is now basically going the DSMC route.