Samsung’s investment in the US is going to be a computer chip factory. South Korean giant wants to face a global crisis in semiconductors. They have chosen a Tailor city in Williamson County, located near Austin (Texas). This facility will be the biggest venture in Texas and the utmost foreign investment in the USA.
Why do we have such a crisis? There are a few reasons.
1.Covid-19 lockdowns have broken supply chains, chip producing factories were closed. More people switched to home-office; students were using computers for education.
2. We can observe rising prices of raw materials used in the chip-making process. Copper and other elements.
3. In the past year many facilities faced a problem with weather in Texas. For example, chip plants in Austin were closed due to snowstorms. Other factories in Japan caught fire. In Taiwan, there was the biggest drought in 50 years (making semiconductors requires a huge amount of water).
Over 17B $ facility will produce computer chips for AI and computers. Due to global shortages in this tech branch, the US government also wanted to secure the US industry from the shortfall. White House states that producing semiconductors is crucial for country security also for tech war with China. Joe Biden is concerned about the situation in the chips market. He wants to make domestic semiconductor production more efficient to cause the US industry less vulnerable to chips shortages.
Why Texas? Because of the stable climate and existing Samsung’s foundry in Austin. This plant will offer over 2,000 workplaces for tech staff and over 6,500 vacancies for construction workers.
“Samsung’s decision to locate its cutting-edge semiconductor fabrication plant in Taylor is the single most significant and consequential development for the local economy since the International & Great Northern Railroad laid tracks here in the 1870s,” said Taylor mayor Brandt Rydell.
Williamson County is prepared to hold this venture, they promised Samsung with tax breaks. Also, they made deals with other neighboring counties to provide decent water and electricity supply.
This plant will be ready in 2024. I think that the US is going to be the global leader in semiconductor production. It’s a great response to the current shortage of microprocessors and chips. Will we defeat this crisis? Yes, but it requires some time, building such facilities is a very complicated process. Also, Intel and TSMC (Taiwanese chip maker) are making ventures in Texas. Time will tell us how we face this crisis down.
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