Samsung announced Tuesday that it will build a 6 million-square-foot semiconductor manufacturing facility on 1,200 acres of land in Taylor, creating more than 2,000 high-tech jobs in the greater Austin area.
Samsung estimates it will spend $17 billion on construction, machinery and equipment for the new factory, making it the largest foreign direct investment in Texas history.
The new manufacturing facility will produce advanced logic chips that will power next-generation devices for applications such as mobile, 5G, high-performance computing and artificial intelligence.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” Kinam Kim, vice chairman and CEO of Samsung’s device solutions division, said in a statement. “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.”
Construction is slated to begin in early 2022, and production is expected to begin in the second half of 2024. The project is expected to create a minimum of 6,500 construction jobs.
State officials awarded Samsung a $27 million grant from the Texas Enterprise Fund, a deal-closing fund used to land economic development projects.
With Tuesday’s announcement, Samsung is doubling down on its investment to Austin, where the company has invested $17 billion since 1997, when it opened a semiconductor fabrication plant on the northeast side of the city.
Samsung built a second fabrication facility in 2007, and an expansion project in 2017 increased the campus to 180 acres and more than 3,000 employees.
By building a new semiconductor facility in Taylor, Samsung said the two facilities will be able to share infrastructure and resources.
“Samsung Austin Semiconductor has been proud to call Texas home for more than 25 years,” Sang Sup Jeong, president of Samsung Austin Semiconductor, said in a statement. “We are excited about our growth and future opportunities in Central Texas and appreciate the support from all Central Texas leaders.”
