Samsung Could Build Its $17 Billion Chip Plant in Texas

By Avi Ben Ezra Friday, February 5, 2021

Samsung, a major global company in the tech sector, is reportedly considering Austin, Texas as a potential site to build its new $17 billion chip factory that could create 1,800 new jobs.

Samsung Research America Silicon Valley campus.

Construction Could Start Soon

The South Korean business said it is asking for combined tax deductions of $805.5 million in the period of 20 years from Travis County and the City of Austin, along with other tax breaks.

In the documents filed with the state of Texas, the tech business said that if it picks Texas, it would start building the plant as soon as Q2 of this year and it expects the plant to become operational in Q3 2023.

“This project is highly competitive, and the company is looking at alternative sites in the US including Arizona and New York, as well as abroad in Korea...,” the company wrote in the filling.

Samsung also said it is taking into consideration access to the workforce and chip ecosystem. It is important to note that the business already operated a chip factory in Austin. The company’s US-based customers for the contract manufacturing semiconductor business are Tesla, Qualcomm, and Nvidia.

The South Korean company also intends to develop “advanced logic devices,” referring to high-speed and compact computing chips for customers. The company noted that it is looking to grow its capacity to design and build chips.

In the filing, Samsung said the Austin plant project would involve building out a huge plant of 7 million square feet on a 640-acre land that the tech business already owns.

The majority of contract manufacturers who produce chips for international clients have built their plants in Taiwan and Korea, including Taiwan Semiconductor Manufacturing (TSMC) and Samsung. Intel, on the other hand, manufactures its chips in the States.

TMSC also unveiled a plan to build a $12 billion chip factory in Arizona, which is expected to become operational in 2024.

The South Korean business suffered a major blow last month when Jay Lee Yon, its Vice Chairman and the person picked to succeed his father at the helm of the company, was sentenced to two and a half years in prison for bribery.


Samsung filed documents with Texas state officials as the tech business considers Austin as a potential site to build its new $17 billion chip plant that could create 1,800 new jobs.

About the Author

Headshot for author Avi Ben Ezra

Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.

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