Samsung Electronics near finalizing $17 bln Texas chip plant -sources

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SEOUL/SAN FRANCISCO — Samsung Electronics Co Ltd is near finalizing the development of a $17 billion semiconductor manufacturing unit in Williamson County within the U.S. state of Texas, three folks with information of the matter mentioned.

Samsung informed Reuters that it’s persevering with due diligence in a number of areas, and that it has but to decide.

The manufacturing unit will make superior logic semiconductor chips and is more likely to create about 1,800 jobs, Samsung beforehand mentioned in filings to state officers.

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One of many folks mentioned although no choice has been made, the Austin suburb of Williamson County is the frontrunner as a result of subsidies on supply in addition to the probability of steady sources of electrical energy and water.

A winter storm shutdown at Samsung’s current chip plant in Austin through the first quarter prompted the equal of 300 billion to 400 billion gained ($254 million to $339 million) of injury to wafer manufacturing.

All three folks declined to be recognized as they weren’t licensed to talk with media.

Samsung beforehand mentioned it might begin development on the brand new 6-million-square-foot (557,418-sq-meter) plant in January, with manufacturing up and operating by the top of 2024.

The plan comes at a time when the worldwide auto business faces a major semiconductor scarcity.

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“With the US turning semiconductors right into a strategic materials, it’s changing into a threat to be concentrated solely in Asia,” mentioned Park Sung-soon, an analyst at Seoul-based Cape Funding Securities.

“Samsung desires to be on the bottom within the U.S.”

Within the international chip contract manufacturing business, Samsung is second to TSMC which had 52.9% of market share in comparison with Samsung’s 17.3% as of end-June, based on evaluation supplier TrendForce.

($1 = 1,179.6200 gained) (Reporting by Joyce Lee and Hyunjoo Jin; Enhancing by Muralikumar Anantharaman, Christopher Cushing and Ana Nicolaci da Costa)