Last month, Samsung ran a 5G test in Texas that currently holds the fastest upload speed. Today, the company has officially announced that it’s going to build a $17 billion semiconductor plant in Taylor, Texas. But, why build such a big project in Taylor, Texas. Well, there are couple of reasons.
For those not familiar with Taylor, Texas; Taylor is a city in Williamson County, Texas, United States. The population was 16,267 at the 2020 census. This means, it’s a pretty big town but you won’t refer to it is been densely populated.
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According to the information on Samsung’s website, construction of the plant is expected to kick off sometime in 2022 and the mass-production will commence sometime in 2024.
Although the node of plant to be employed by the company is not specified, Samsung has specified that plant will be used to manufacture products for “5G, high-performance computing (HPC) and artificial intelligence (AI)” applications, so it could be a 5nm or newer process.
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Why build the Plant in Taylor Texas
- Community development
- Infrastructure
- Local Job creation
- Support from the government
- Low Cost of purchase and operation
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According to the report, Samsung promises to create some 2,000 high-tech jobs in the area. Also, this will bring community development to the town.
So all the factors seems to be in place, government support is checked, job creation in a relatively small town is checked, building of infrastructure and development of the town is also checked. Plus cost of purchasing land in the town will be cheaper compared to major cities.
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Kinam Kim, Vice Chairman and CEO, of Samsung Electronics, said,
“With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.
We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the U.S.”
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To meet high demand for its products in the US, it’s good that Samsung has a base in the country. Building a plant in the US is a good move.
