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The Wall Street Journal reports Samsung is building a new factory for chip production in Taylor, Texas. This facility will cost about $17 billion to build and is part of Samsung’s planned $205 billion investment through 2025. Documents have been filed with the State of Texas that propose a site that, according to Samsung, will create about 1,800 jobs when it opens in 2024.
The city of Taylor is reportedly offering Samsung heavy property tax rebates, which come out to 92.5% in the first ten years, falling slightly in the decades after, to 90% in the second, then 80% in the third.
Samsung also has a chip plant in Austin, Texas – the state’s capital. Samsung is the largest chipmaker in the world by revenue.
Samsung’s new plant is expected to sit on 1,200 acres of land. However, a Samsung spokesperson noted that “a final decision has not yet been made regarding the location.”
This report goes to show that Samsung is still fighting chip shortages. The chip shortage due to the coronavirus pandemic has impacted Apple, Microsoft, Google, and other major tech players. Samsung manufactures Google’s Tensor chip – and these chip shortages have reportedly caused Google to cancel its Pixel Fold.
Apple’s supplier TSMC is also making plans to add more chip-making facilities in the United States. TSMC has said it will spend $100 billion on chip factories through 2024-2025, which helps visualize the massive demand for chips in this pandemic.