Samsung: $17 billion factory to come to Texas

Western companies always look for locations in the Far East? That may be the case in many cases. Samsung, as a South Korean company, now wants to turn the tables. So the electronics group has now decided to invest 17 billion US dollars in the construction of a factory in Texas, USA.

Factory in the small town idyll

Now is fact, what was already speculated in September this year. Samsung has officially confirmed that it will build a new factory in the small Texas town of Taylor (population 17,000). Thus, the South Koreans have finally decided on one of the many applicants. Taylor was probably not able to prevail without reason. After all, Samsung was promised all kinds of attractive advantages, such as tax relief. Officially, however, the talk is now primarily about what an enrichment Samsung itself will be for the small Texas town.

The biggest advantage for Taylor is probably the big name “Samsung”. After all, every province wants to be able to host a well-known company. What advantages Samsung has secured for itself with its choice of location is still being skillfully concealed at the moment. These include, for example, strong tax breaks in the first ten years. Despite the almost existing tax exemption, Samsung advertises that it is the largest local tax payer with its factory. However, with a small town, this should not be a problem for an electronics giant like Samsung.

Big investment of 17 billion US dollars

Samsung seems to have a lot planned for the small-town idyll. The electronics group wants to invest a total of 17 billion US dollars to build its factory. A total of 2,000 jobs are to be created in the process. And that is not the end of the story. Experts also expect that many more jobs will be created when factory work begins. Particularly in the supplier sector, we can probably also assume several thousand jobs created here.

Many unknowns

However, more than the amount of the investment is not yet known. In particular, Samsung has not yet revealed information about what is to be manufactured at all and which manufacturing structures are to be used. Nevertheless, Samsung cannot deny the usual terms of modern tech companies. In the meantime, we have learned that these are often more PR than serious statements.

For example, the South Korean company talks about 5G, mobile and artificial intelligence. Since this can mean almost Samsung’s entire product portfolio by now, you can’t really put much stock in the statements. But there is still reason for speculation. Precisely because many extensive divisions of Samsung are mentioned, one can possibly assume a manufacturing plant for chips.

Construction to start in 2022

Incidentally, we also do not know how high the subsidies on the part of the USA will be. However, it can be assumed that the United States has invested a few billion US dollars in view of the CHIPS Act. With the CHIPS ACT, the state is pursuing the goal of gaining more independence from Far Eastern chip production. We will probably only know more once the groundbreaking ceremony has taken place. This is expected to take place in the first half of 2022. Currently, it is expected that the first finished production results will be available by the end of 2024. Until then, Samsung’s US production will take place a few kilometers away in the other Texas plant.