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Samsung is scouting Arizona for new fab site


Wednesday, July 21, 2021

Samsung released information about US locations under consideration for a new chip fabrication plant, as the company prepares to break ground on a $17 billion project set to bring more semiconductor manufacturing jobs and research to the country.

The South Korean company stated it is evaluating sites in Arizona, New York and Texas, where an existing fabrication plant is located.

One of the sites under consideration for the new facility is in Taylor, Texas. Additional locations include a spot in Genesee County, New York; and two areas in Arizona near the cities of Goodyear and Queens Creek.

Arizona is already the site of other planned chip fabrication plants: TSMC broke ground this year on a $12 billion chip factory and Intel allocated $20 billion to build two facilities in the state.

In documents filed with local authorities in Taylor, Samsung stated its factory will make “advanced logic devices for Samsung’s Foundry business”, and construction could start in early 2022 and end in late 2024. The company said the facility will create 1,800 new jobs.

Samsung noted it is also evaluating locations in Korea for the fabrication facility.

Opportunities

Chip manufacturers stand to benefit from tax breaks and subsidies as the US government looks for ways to boost domestic semiconductor production.

In June, the Senate proposed tax credits for companies which invest in manufacturing and President Joe Biden has called for up to $50 billion in funding for chipmakers.

Politicians are looking for ways to increase domestic production in the wake of global supply shortages, along with concerns about trade tensions and reliance on chips made in China.

Intel, which has argued it is “uniquely positioned” to answer the US government’s call for more domestic semiconductor production, is reportedly mulling a $30 billion purchase of GlobalFoundries, which has a number of chipmaking facilities in the US.

By: DocMemory
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