Samsung Electronics Eyes Texas Location For $17B Chip Plant

Samsung Electronics is doubling its efforts to supply semiconductor chips with an additional factory in Texas but outside of Austin.

According to documents filed with Texas state officials obtained by Reuters, Samsung is considering a location in Williamson County for a $17 billion chip factory and has applied for tax breaks to potentially build the plant.

Documents revealed that the investment would comprise “in excess of $17 billion dollars” and 1,800 new jobs, Reuters reported.

Samsung currently has a chip factory in Austin and has been shopping for a location for another plant, including an area in Austin, New York, and two sites in Arizona, The Hill reported in March.

According to Reuters, no new documentation has been filed in Austin since March, but Samsung did mention in its recent public filing with Williamson County that it is looking at alternative sites in the U.S. and South Korea to build the factory.

Samsung said it plans to break ground on the chip factory by the first quarter of 2022 if an investment is made and expects to start production by the end of 2024, documents stated as indicated by Reuters.

The global chip shortage has caused automakers to reduce their production schedules, temporarily close plants, and cut back on vehicle deliveries as they await chip supplies. The disruption to the auto industry alone has many automakers anticipating revenue losses for the second half of the year as shortages of chips are expected to continue.

Mercedes and Land Rover have both said they expect the bottlenecks to continue. Daimler’s Mercedes-Benz said it expected impacts to the next two quarters, while Jaguar Land Rover said it anticipates a sales loss of 50% for the next quarter.

Both Ford and GM have said the chip shortages will take a hit to their bottom line. Ford expects $2.5 billion in lost revenue for the year, while GM said plant disruptions caused by the chip shortages will cost it $1.5 billion to $2 billion this year.