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

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SEOUL / SAN FRANCISCO, Sep 29 (Reuters) – Samsung Electronics Co Ltd (005930.KS) is nearing completion of construction of a $ 17 billion semiconductor factory in Williamson County, Texas, three with the matter said familiar people.

Samsung told Reuters that it is continuing due diligence in multiple locations and has not yet made a decision.

The factory will make advanced logic semiconductor chips and is expected to create about 1,800 jobs, Samsung said earlier in filings to state officials.

One of the people said, while a decision has not been made, the Williamson County suburb of Austin is the front runner because of the subsidies on offer and the likelihood of stable electricity and water sources.

A winter storm shutdown at Samsung’s existing chip factory in Austin in the first quarter caused damage to wafer production of the equivalent of 300 to 400 billion won (254 to 339 million US dollars). Continue reading

All three people declined to be identified as they were not allowed to speak to the media.

The Samsung Electronics logo is pictured at the company’s factory in Tijuana, Mexico on June 1, 2019. REUTERS / Jorge Duenes / File Photo

Samsung previously announced that it would begin construction on the new 6 million square foot (557,418 square meter) facility in January, with production scheduled to begin operating by the end of 2024. read more

The plan comes at a time when the global auto industry is facing significant semiconductor shortages. Continue reading

“As the United States makes semiconductors a strategic material, focusing only on Asia becomes a risk,” said Park Sung-soon, an analyst at Cape Investment Securities, based in Seoul.

“Samsung wants to be there in the USA”

According to analysts TrendForce, Samsung ranks second in the global chip-to-order industry behind TSMC (2330.TW), which had 52.9% of the market share, compared to Samsung’s 17.3% at the end of June.

($ 1 = 1,179,6200 won)

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

Our Standards: The Thomson Reuters Trust Principles.

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