Article

New Samsung Semiconductor Plant in Taylor, Texas

An investment by Samsung, spurred by funding from the CHIPS and Science Act, will create a new semiconductor plant in Taylor, Texas, to complement the company’s previous investment in chips in Austin, Texas.

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The Samsung Austin Semiconductor plant is seen on April 16, 2024, in Taylor, Texas. (Getty/Brandon Bell)
Snapshot
  • Project name: Samsung Taylor Semiconductor Fab

  • Program: CHIPS for America

  • Law: CHIPS and Science Act

  • Recipient: Samsung

  • Investment amount: $17,000,000,000

  • City: Taylor

  • State: Texas

  • Congressional districts: 17 and 31

  • Construction start date: 2022

  • Jobs created: 2,000 permanent and 6,500 construction initially expected, and 20,000 more in the region after further investment

This profile is part of a project that finds and tracks the public and private sector investments generated or supported by three of the Biden administration’s economic laws. These laws make investments in the American people, helping to grow the middle class, lowering the cost of living, and setting up America to better compete and cooperate in the world. Pulling directly from several sources, this catalog provides users with publicly available information such as the number of jobs created, workforce training partnerships, and storytellers benefiting from particular projects, among other detailed information. The profile below expands on the economic, practical, and climate impacts of just one of the 35,000 investments that can be found in the Biden Administration Investment Tracker.

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Samsung invested approximately $17 billion to build a new semiconductor manufacturing facility in Taylor, Texas, spurred on by the CHIPS and Science Act. The new fabrication plant (fab) will produce advanced logic chips for mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI) purposes. Following the announcement of a $6.4 billion investment from the CHIPS and Science Act, Samsung has increased their planned investment to $40 billion for Central Texas, yielding another 20,000 jobs.

Historical context

  • Samsung has had a limited presence in the United States since 1978. “The total expected investment of $17 billion, including buildings, property improvements, machinery and equipment, will mark the largest-ever investment made by Samsung in the U.S. This will also bring Samsung’s total investment in the U.S. to more than $47 billion since beginning operations in the country in 1978, where the company now has over 20,000 employees across the country.” – Samsung, November 23, 2021
  • Two years following President Joe Biden’s visit to South Korea, and after he signed the CHIPS and Science Act into law, Samsung has agreed to invest in facilities that will manufacture and package the advanced chips in the United States, instead of other chips that are made here and sent to Taiwan to be packaged. “President Biden visited the company’s Pyeongtaek campus in South Korea two years ago. The new Texas plants will include facilities dedicated to research and development, and will have the ability to not only manufacture the chips, but package them, too. Many chips that are made in the U.S. still have to get sent to Taiwan to get packaged. ‘We’re saying for the first time ever, Samsung can conduct in the United States of America core research and development, support the future and manufacturing at scale and advanced packaging all in Texas,’ Commerce Secretary Gina Raimondo told reporters on a conference call. She described the facilities Samsung is building as ‘massive’ — the first one will be the size of 11 football fields.” – NPR, last updated April 15, 2024
  • The two facilities have added $26.8 billion to the local economy and created more than 20,000 jobs. “The economic impact for Taylor and Williamson County has been substantial. In 2023, Samsung’s Austin manufacturing site along with the Taylor construction site injected $26.8 billion into the local economy — nearly doubled compared to $13.6 billion in 2022. In 2023, construction activities at the Taylor site injected $11.6 billion into the local economy and supported a total of 8,897 direct and 9,264 indirect construction jobs. In the same year, operations at the Taylor site pumped $115 million into the region while supporting 2,317 jobs in the area.” – Samsung, last accessed May 2024

Project summary

  • The new fab in Taylor, Texas, will produce advanced logic chips to power next-generation devices. “The new manufacturing facility will produce advanced logic chips that will power next-generation devices for applications such as mobile, 5G, high-performance computing (HPC), and artificial intelligence (AI).” – Office of Texas Gov. Greg Abbott (R), November 23, 2021
  • The facility was planned to begin operations in late 2024. “Groundbreaking will be in the first half of 2022 with the target of having the facility operational in the second half of 2024. The Taylor site will span 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, November 23, 2021
  • The fab could be the largest building in the United States, and despite some initial reports of delays, the company’s chief financial officer expects an on-time manufacturing start. “The massive Samsung semiconductor plant located in Taylor is set to begin operations as early as July 1, according to one local leader. During their meeting Tuesday, Williamson County Judge Bill Gravell told his fellow county commissioners that he learned this start date after talking with the company’s chief financial officer while attending a semiconductor conference recently in South Korea. ‘The Samsung project in Williamson County is on time, and as far as the beginning of manufacturing, it is my understanding from that conversation that Samsung Taylor will begin receiving occupants…in their building facility no later than July 1 and that they will begin manufacturing within that timeframe,’ Gravell said. At the end of last year, reports surfaced the Taylor plant would not start mass production until 2025. However, Gravell said things are going according to plan now. He also shared construction crews already started pouring the foundation for a second fabrication plant at the Taylor complex. Upon its completion, Gravell said this would be the single biggest building in the United States.” – KXAN, last updated February 8, 2024
  • The company will receive $6.4 billion in direct funding from the CHIPS and Science Act, which will drive a further $40 billion investment from Samsung in the region. “Samsung Electronics today welcomed U.S. Secretary of Commerce Gina Raimondo to its new semiconductor manufacturing facility in Taylor, Texas, at an event to announce up to $6.4 billion in direct funding to Samsung as part of the CHIPS and Science Act. Samsung Semiconductor CEO Kye Hyun Kyung and Secretary Raimondo held a celebration of the investment which will enable Samsung to further expand in Central Texas and create new manufacturing capacity and capabilities for essential chips for the automotive, consumer technology, IoT, aerospace and other vital industries. ‘We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination,’ said Kyung. ‘To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain.’ … With the addition of investment through the CHIPS and Science Act, Samsung is expected to invest more than $40 billion in the region in the coming years as one of the largest foreign direct investments for a greenfield project in United States history, transforming the small municipality of Taylor, Texas, into an expansive hub of leading-edge U.S. semiconductor manufacturing.” – Samsung, April 14, 2024

Economic impact

  • The first fab will yield 6,500 construction jobs, 2,000 high-tech jobs, and thousands of indirect jobs. “The project will create over 2,000 high-tech jobs, thousands of indirect jobs, and a minimum of 6,500 construction jobs. Construction will begin in early 2022 with a target of production start in the second half of 2024. The $17 billion in capital investments includes buildings, property improvements, machinery, and equipment.” – Office of Gov. Greg Abbott, November 23, 2021
  • The investment is expected to create thousands of well-paying jobs, ranging from entry-level techs to engineers. “These jobs will create opportunities for people with GEDs to PhDs. Positions will range from entry-level technicians to engineers and will include plenty of upskilling opportunities. … The facility will also help create opportunities in several other areas of employment. … The facility will also help create opportunities in several other areas of employment. In 2022, construction activities at the Taylor site supported 4,643 direct and additional construction jobs. As Samsung expands in the region, we also expect our partners and vendors to expand their workforce. As the site nears operational status, Samsung Austin Semiconductor will contract with service providers for security, janitorial, cafeteria services and more to help manage the facility.” – Samsung, last accessed May 2024
  • The larger CHIPS and Science Act investment would allow Samsung to create more than 20,000 jobs and help the United States get on track to produce about 20 percent of the world’s logic chips by 2030. “Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and Samsung Electronics (Samsung) have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.4 billion in direct funding under the CHIPS and Science Act to strengthen the resilience of the U.S. semiconductor supply chain, advance U.S. technology leadership, and fuel U.S. global competitiveness. Samsung – the only leading-edge semiconductor company that is a leader in both advanced memory and advanced logic technologies – is expected to invest more than $40 billion dollars in the region in the coming years, and the proposed investment would support the creation of over 20,000 jobs. The proposed investment would turn Samsung’s existing presence in Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States, including two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, as well as an expansion to their existing Austin facility. It also demonstrates Samsung’s ongoing commitment to the United States, where it has been manufacturing chips since 1996. By continuing to develop the technologies of the future in the United States, Samsung is taking steps that would work towards strengthening U.S. economic and national security and increasing the resilience of both the U.S. and global semiconductor supply chains. Because of investments like Samsung’s, the United States is projected to be on track to produce roughly 20% of the world’s leading-edge logic chips by 2030.” – National Institute of Standards and Technology (NIST), April 15, 2024
  • Samsung has been investing in local workforce development and training. “As part of our investment in Taylor, Samsung Austin Semiconductor partners with the Taylor Independent School District to develop valuable skills for future careers and provide internships for students. … In addition, we work with local workforce development organizations, colleges and universities to help build our talent pipeline.” – Samsung, last accessed May 2024
  • Samsung launched an internship program with the local high school. “Samsung Austin Semiconductor launched an internship program for Taylor High School students in the summer of 2022. As part of our commitment to the community, every summer we’ll be hiring a minimum of 24 seniors who will work for six weeks at either the Samsung Taylor construction site or our Austin manufacturing facility.” – Samsung, last accessed May 2024
  • Samsung donated $1 million for the construction of a career and technical education center at Taylor High School to help invest in equipment and training for students who want to pursue careers in the semiconductor field. “Samsung presented leaders from the Taylor Independent School District with a $1 million check Tuesday to help get a new building and program off the ground. The announcement about this sizable monetary donation came at the groundbreaking Tuesday afternoon for a new Career and Technical Education Center at Taylor High School. A Samsung representative shared how this will help invest in equipment, staffing and training needed for new classrooms and labs. The center is expected to open in fall 2025, district leaders said. The speakers at Tuesday’s event detailed how they anticipate this new center will work to train Taylor ISD students for employment opportunities at the company’s massive new semiconductor plant. ‘We know Taylor is going to be the central location for all of those things. Whether it’s Samsung, or Gemini, or any of the other opportunities that are coming to Eastern Williamson County, we have the ability to provide them exactly what they need and make sure our students are world class,’ Rachelle Finck, director of behavioral health and student services at Taylor ISD, said.” – KXAN, November 14, 2023
  • Samsung was offered a veteran created job bonus. “A Texas Enterprise Fund (TEF) grant of $27,000,000 has been extended to Samsung for their job creation. In addition, Samsung has been offered a $20,000 Veteran Created Job Bonus.” – Office of Gov. Greg Abbott, November 23, 2021

Official supporting statements

  • Gov. Greg Abbott: “Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce. … Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.” – Office of Gov. Greg Abbott, November 23, 2021
  • Taylor Mayor Brandt Rydell (D): “Samsung’s decision to locate its cutting-edge semiconductor fabrication plant in Taylor is the single most significant and consequential development for the local economy since the International & Great Northern Railroad laid tracks here in the 1870’s. … The City of Taylor is honored to have been selected by Samsung as the site for this critically important project, and we look forward to a long-lasting and mutually-beneficial relationship between our community and the company.” – Office of Gov. Greg Abbott, November 23, 2021
  • Vice Chairman and CEO of Samsung Electronics Device Solutions Division Dr. Kinam Kim: “As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future. … With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain. We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the United States.” – Office of Gov. Greg Abbott, November 23, 2021
  • Taylor Economic Development Corp. President and CEO Mark Thomas: “As one of the largest foreign investment economic development projects in United States history, to say Samsung’s commitment to this project is monumental would be a huge understatement. … The Taylor Economic Development Corporation with its partners at Williamson County, the City of Taylor and the Office of the Governor are beaming with pride to bring this important Advanced Chip Manufacturing facility to the City of Taylor, Williamson County, the Austin MSA, State of Texas and the United States of America.” – Office of Gov. Greg Abbott, November 23, 2021
  • Samsung Semiconductor CEO Kye Hyun Kyung: “Our common goal of strengthening the semiconductor ecosystem to contribute to economic and national security, cannot be achieved without mutual efforts. Samsung has come this far with the support of the U.S. federal government and the State of Texas, as well as local governments and communities. We will support and participate in the CHIPS R&D program such as NSTC and NAPMP to create new opportunities for the innovation of semiconductor industry. However, for our semiconductor ecosystem to truly be successful, it is absolutely critical that our efforts here to attain active support from the public sector, including more inclusive STEM education, more eligibility for Investment Tax Credit programs, and more innovation under the CHIPS and Science Act as well as Texas CHIPS Act. We sincerely thank President Biden, Secretary Raimondo and the Department of Commerce for the proactive support and assistance, and the Members of Congress who made this moment possible. We would like to express our sincere gratitude to Governor Abbott and the Texas state government, as well as Williamson County, the City of Taylor, the City of Austin, and the local communities for their unwavering support. We are grateful to our customers and suppliers for their continuous trust and partnership. And last but not least, we would like to thank our more than 20,000 – and growing – U.S. employees, who will continue to drive our success in America.” – Samsung, April 14, 2024

Selected clips

  • “How Samsung and Texas Instruments made the Lone Star State the hub of U.S. chip manufacturing” – CNBC, July 20, 2023
  • “Plans call for 11 Samsung chip-making plants in Texas, nearly $200 billion investment” – Spectrum News 1, July 22, 2022
  • “Samsung gets $6.4 billion to build massive semiconductor plants in central Texas” – NPR, last updated April 15, 2024

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