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Samsung Electronics Co. is considering an investment in a chip manufacturing plant that could cost up to $ 13 billion.
The South Korean company is investigating two sites around Austin, Texas, two sites around Phoenix and one site in New York’s Genesee County, sources Told The Wall Street Journal.
Samsung wants to take the opportunity to negotiate with the federal government as the United States strives to become less dependent on Taiwan, China and South Korea, the sources said. Samsung will negotiate tax and other incentives with the government because it would be cheaper to develop its product in other parts of the world.
Incentives for chipmaking were passed in January with the National Defense Authorization Act, but it has yet to receive the promised funding.
Samsung is trying to compete with Taiwan Semiconductor Manufacturing Co. (TSMC), also based in the United States and a leader in the chip manufacturing industry. TSMC plans to commission $ 12 billion plant in Arizona by 2024, Bloomberg reported.
“If Samsung is serious about achieving its goal of becoming the leading chipmaker by 2030, it needs massive investment in the United States to catch up with TSMC,” said Greg Roh, senior vice president of HMC Securities. “TSMC is likely to continue to make progress in process nodes down to 3nm at its Arizona plant and Samsung could do the same. A difficult task is to secure the EUV equipment now, when Hynix and Micron are also looking to buy the machines. “
Samsung’s goal is to commission a chip manufacturing plant by October 2022 and employ 1,900 people at that plant. There are plans to invest $ 10 billion in a factory near Austin, sources told Bloomberg.
Austin city council met in December after Samsung asked to rezone part of its land for industrial development. A brokerage report has revealed that Intel will likely give Samsung more orders, so it doesn’t rely as much on TSMC.
Samsung wants to be the biggest company in a $ 400 billion industry and plans to invest $ 116 billion over the next decade to achieve it.
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