Samsung doubles investment in the United States: it will build one more wafer fab and one more packaging plant

Latest update time：2024-04-06

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Source : Content compiled from QZ by Semiconductor Industry Observation (ID: ic bank ) , thank you.

U.S. chip manufacturing is getting another boost from South Korean electronics giant Samsung, which reportedly plans to increase its investment in the Texas semiconductor hub to $44 billion.

Samsung has committed to spending $17 billion to build a chip manufacturing plant in Tyler, Texas, outside Austin, in 2021, the Wall Street Journal reported, citing people familiar with the matter. Additional investment will be used to build the center, which will also include advanced packaging and R&D facilities. this matter. Sources told the Wall Street Journal that development of the chip manufacturing plant began in 2022, but since then construction costs have continued to rise due to inflation and other factors. Another chip manufacturing plant in the region is expected to cost more than $20 billion, they added. The advanced packaging facility will reportedly cost $4 billion.

The electronics maker is reportedly expected to receive billions in subsidies from the U.S. Chip and Science Act, part of the Biden administration's efforts to boost domestic chip manufacturing amid artificial intelligence hype and competition with China. Samsung did not immediately respond to a request for comment, and the Commerce Department said it does not comment on potential applicants or applications. However, Samsung is expected to make one of the largest payments to a single company in the bill, according to the Wall Street Journal. US semiconductor pioneer Intel recently received $8.5 billion in direct government funding from the bill, which will support its plan to invest more than $100 million over the next five years to expand semiconductor production in the country.

Samsung, Intel and Taiwan Semiconductor Manufacturing Co. (TSMC) are the only three companies capable of producing advanced logic chips used in artificial intelligence development and national security, with TSMC delaying plans to build a chip factory in Arizona, The Wall Street Journal reported. .

Earlier on Friday, Samsung said it expected operating profit in the first quarter of 2024 to be US$4.9 billion, a year-on-year increase of 930%, much higher than the US$3.9 billion expected.

South Korean chipmaker SK Hynix reportedly plans to invest billions of dollars to build a semiconductor factory in West Lafayette, Indiana, which could begin operations in 2028. The company has a partnership with chip manufacturing leader Nvidia to provide high-bandwidth memory (HBM) chips, which are combined with Nvidia's graphics processor units (GPUs) to power leading generative AI models including ChatGPT provide support.

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https://qz.com/samsung-upping-texas-semiconductor-investment-billions-1851390785

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