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Samsung said on Tuesday it will build a $17 billion semiconductor factory in Taylor, Texas, and is giving a big boost to its effort to persuade chipmakers in Washington to manufacture more components in the United States.
The company’s decision comes after months of deliberation over possible locations in the United States and South Korea. The company, one of the world’s largest manufacturers of computer chips, has considered locations in Arizona and New York, as well as a site in Austin, about forty minutes from Taylor.
While Washington urges chip makers to build more in the United States, cities competed to get a piece of the potential boom. Taylor went to great lengths to lure the Samsung factory. The city, the independent school district, and the surrounding county have promised the company hundreds of millions of dollars in tax breaks. Semiconductor plants require plenty of water and reliable power, so they have come to an agreement to carry water for the plant from the neighboring county.
Samsung’s decision came amid a massive semiconductor shortage that is critical to a variety of products, including Ford F-150s, medical devices, and iPhones.
Lawmakers and the Biden administration are concerned that enough of the vital ingredients are not produced in America. China has invested heavily in promoting the production of computer chips within its borders, and Taiwan and South Korea produce the bulk of semiconductors. Policymakers worry that this will put the United States at a disadvantage in terms of economic and national security.
The facility in Taylor will be the last facility to be built in America in recent years. This year, Intel laid the groundwork for two new factories on an existing campus in Arizona. Taiwan Semiconductor Manufacturing Company is also establishing a new factory in the province.
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