Samsung may have found a way to end the component shortage, here’s how

Samsung Electronics plans to build a chip manufacturing plant that will cost around $ 17 billion in Taylor, Texas. It will be the largest investment in Samsung’s history in the United States.

Credit: Unsplash

As the Biden administration lobbies for a rapid expansion of semiconductor production in the United States, Samsung has reportedly chosen to build a semiconductor plant on 1,200 acres of land in Taylor, Texas, United States. Samsung would have chosen Texas, because the American state would have offered it lucrative tax benefits, such as a reduction in property taxes during the first ten years of operation.

According to documents filed with those responsible for land use planning, the plant will provide up to 1,800 jobs and chip production could begin as early as 2024. It would also create at least 6,500 jobs in the construction sector, according to Texas Governor Greg Abbott.

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Factory could help alleviate semiconductor shortage, but it might be too late

The South Korean giant could make chips with 3nm engraving on this new site, if we are to believe a previous Bloomberg report. In addition, it is supposed to produce chips for autonomous vehicles and mobile devices. Samsung could therefore use it to produce future Qualcomm Snapdragon chips for Android smartphones, or its own Exynos chips.

Samsung’s announcement to build a new Texas chip factory comes against a backdrop of a semiconductor shortage, where it is more and more complicated to obtain electronic products at a reasonable price. We think in particular of soaring graphics card prices, or to the difficulties of restocking certain consoles such as PS5 and Xbox Series X.

The problem is, Samsung’s new factory won’t start producing its first chips until 2024. Nvidia, Intel and TSMC say chip shortage is only expected to last until 2023, Samsung’s factory in Texas might therefore arrive too late. Nevertheless, it is hoped that this will help prevent the arrival of new shortages.

Source : The Wall Street Journal

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