Samsung has announced that it will build a $ 17 billion (£ 12.7 billion sterling) in Texas, amid a global shortage of chips used in cars, phones and other electronics.
The factory located just outside 'outside Austin would be the plus large American investment of the South Korean company and should be operational in the second half of 2024.
Samsung had also considered sites in Arizona and New York for the plant, which will be much larger than its only other US chip plant, also in Austin.
Samsung said the new facility will boost the production of high-tech chips used for 5G mobile communications, advanced computing and artificial intelligence, as well as improve the resilience of the business chain. 'supply.
The chip shortage has become a major obstacle and a serious US national security concern. Shutdowns during the Covid-19 pandemic resulted in supply issues, hampering production of new vehicles and electronics for more than a year. The secNationality has also become an issue as many US companies depend on chips produced overseas, particularly in Taiwan, which China has long claimed as its own territory.
Nina Turner, a research analyst at research firm IDC, said it was" a concentration risk, a geopolitical risk "to be so dependent on Taiwan for much of the world. global production of chips. She added that the shortages were likely to ease, but there would be long-term demand for the chips as more and more everyday products would depend on them.
Announcement of Samsung's new factory, the governor of Texas , Greg Abbott, said:" This is the largest foreign investment ever to sayct never made in the state of Texas.
Samsung is one of the world's largest chipmakers with more than 20,000 employees. across the United States. He said the latest announcement brought his total investment in the country to $ 47 billion.
The company's vice president, Kinam Kim, said he chose the site based on a number of factors, including government incentives and the "readiness and stability" of the local infrastructure.
Many chipmakers are expanding their manufacturing operations in response to shortages, which have taken a toll on industries ranging from automobiles to the video game industry.
Angelo Zino, analyst at CFRA, said:" It makes sense that the supply chain is a bit more geographically persified. He added that another factor was the expectation that the Congvery much would approve federal subsidies for the semiconductor industry to build its factories in the United States, in the hopes that it would create jobs, reduce future supply problems, and give the United States more money. weight on their economic rivals such as China.
The Biden administration pushed for Congress to pass the $ 52 billion chip law to increase manufacturing and research of computer chips. Separate legislation also under consideration would create a tax credit for investment in semiconductor manufacturing facilities.
D ' other countries have made similar efforts to have chips manufactured closer to where they are used. The European Commission said earlier in November that it could approve aid to finance semiconductor production in the block of27 countries.