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Samsung Electronics close to finalising $17 bln Texas chip plant -sources

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The emblem of Samsung Electronics is pictured on the firm’s manufacturing facility in Tijuana, Mexico, June 1, 2019. REUTERS/Jorge Duenes/File Photograph

SEOUL/SAN FRANCISCO, Sept 29 (Reuters) – Samsung Electronics Co Ltd is near finalising the development of a $17 billion semiconductor manufacturing facility in Williamson County within the U.S. state of Texas, three individuals with information of the matter stated.

Samsung advised Reuters that it’s persevering with due diligence in a number of places, and that it has but to decide.

The manufacturing facility will make superior logic semiconductor chips and is prone to create about 1,800 jobs, Samsung beforehand stated in filings to state officers.

One of many individuals stated although no resolution has been made, the Austin suburb of Williamson County is the frontrunner because of the subsidies on supply in addition to the chance of secure sources of electrical energy and water.

A winter storm shutdown at Samsung’s current chip plant in Austin throughout the first quarter precipitated the equal of 300 billion to 400 billion received ($254 million to $339 million) of injury to wafer manufacturing.

All three individuals declined to be recognized as they weren’t authorised to talk with media.

Samsung beforehand stated it will begin development on the brand new 6-million-square-foot (557,418-sq-meter) plant in January, with manufacturing up and working by the tip of 2024.

The plan comes at a time when the worldwide auto trade faces a big semiconductor scarcity.

“With america turning semiconductors right into a strategic materials, it’s changing into a danger to be concentrated solely in Asia,” stated Park Sung-soon, an analyst at Seoul-based Cape Funding Securities.

“Samsung desires to be on the bottom within the U.S.”

Within the world chip contract manufacturing trade, Samsung is second to TSMC which had 52.9% of market share in comparison with Samsung’s 17.3% as of end-June, in line with evaluation supplier TrendForce.

($1 = 1,179.6200 received)

Reporting by Joyce Lee and Hyunjoo Jin; Enhancing by Muralikumar Anantharaman, Christopher Cushing and Ana Nicolaci da Costa

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