That’s why Samsung chooses Texas for its microchip factory
Samsung will build a 17 billion microchip factory in Taylor, Texas. The site was chosen for generous state incentives, with property tax discounts of 90 percent. All the details
The Wall Street Journal wrote that South Korean electronics company Samsung Electronics plans to build a roughly $ 17 billion microchip factory in Texas. The plant will be built in the town of Taylor, not far from Austin, and could create 1,800 jobs.
THE CHOICE OF THE SITE
Samsung Electronics – the world's largest manufacturer of memory chips – was evaluating sites in Arizona and New York for its new factory in the United States. The choice ultimately fell on Williamson County, near Taylor, as a matter of incentives offered by local political authorities: sources revealed to Reuters . That is,discounts on property taxes of over 90 percent for ten years.
WHAT WILL BE PRODUCED
Samsung already owns a chip factory in Texas, Austin. Taylor's will be larger and dedicated to the manufacture of advanced chips, which will then be used on mobile devices (smartphones, tablets…) and on self-driving vehicles. The automotive sector – not only in the United States – is one of the sectors most affected by the shortage of semiconductors that has been going on for many months now. It is not unusual then if two major American companies, Ford and General Motors , are planning to enter the field of microchips.
THE STRATEGIC VALUE OF CHIPS
Semiconductor manufacturing is considered strategic by the American administration of Joe Biden: they are crucial components for all those industries that will develop with the ecological and digital transitions.
The possession of advanced chip manufacturing capabilities at home is therefore considered a priority by the United States, in light of the economic-political competition with China. Washington, then, is trying to thwart Beijing's chip progress. For example, it has imposed stricter restrictions on the trade in various software, equipment, or technologies used to produce chips. And it is also spending a lot – over $ 50 billion – on domestic output capacities to maintain and strengthen America's competitive advantage.
In addition to Samsung, the Taiwanese TSMC and the American Intel , which traditionally dealt with the design of chips but not their manufacture, want to expand production capacities on US soil – attracted by public aid -.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/samsung-texas-fabbrica-semiconduttori/ on Tue, 23 Nov 2021 14:39:24 +0000.