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Samsung will create 2,000 jobs in Texas with $17 billion chip factory

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Announcing its largest investment in the United States, South Korea’s electronics giant said Tuesday that the factory would directly create 2,000 high-tech jobs and thousands more in the local economy once it is in full swing. operation. The facility is expected to become operational during the second half of 2024

“With increased manufacturing capacity, we will be able to better meet the needs of our customers and contribute to the stability of the global semiconductor supply chain,” Kinam Kim, vice president and CEO of Samsung Electronics, said in a statement.

The company said it chose the city of Taylor in Texas for its new plant based on multiple factors, including its proximity to Samsung’s current manufacturing site in Austin, the local semiconductor ecosystem and government support. .

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Taylor’s site will cover more than 5 million square meters and is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity, along with its latest new production line in Pyeongtaek, South Korea.

Samsung’s announcement comes at a time when the Biden administration has been pushing semiconductor production and research in the United States.

Although the current The global shortage of computer chips is mainly due to the impact of the pandemic, extreme weather events that have hampered production and other factors, the United States has lagged behind others producers for years.

Its share of semiconductor manufacturing worldwide dropped to 12% last year, according to the Semiconductor Industry Association. That’s 37% lower than in 1990. The trade group blamed the “substantial” subsidies offered by foreign governments that put the United States at a “competitive disadvantage”.

Asian countries, included Taiwan and South Korea dominate the industry. Samsung and other South Korean manufacturers are spending large sums of money to bolster their production over the next decade.
In May, Samsung said this would invest 38 trillion Korean won ($ 34 billion) in the production of logic chips, the brains that power computers. This puts his total business spending at 171 trillion won ($ 151 billion). the next decade, including the commitments announced in 2019.

The chip maker also announced it in May which has begun construction of the production line at Pyeongtaek, one of the world’s largest semiconductor production centers, which it hopes to complete by 2022.

– Matt Egan and Diksha Madhok contributed to this report.

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