Samsung’s US chip plant to be completed by end of 2023, confirms CEO

South Korean company Samsung Electronics is looking to complete its upcoming in the US by the end of 2023. In an Instagram post today, the company’s chief executive, Kyun Kye-Hyun, said that the construction of the facility is progressing as planned and will “start producing” by the end of the year.

The fab, located in Taylor, Texas, is the first in a line of units Samsung is said to be planning in the US. Bloomberg reported in July 2022 that the company had made a proposal to build 11 new fabs in the US as part of a $200 expansion plan. The company officially announced the $17 billion investment in November last year, saying it will make facilities in Austin and Taylor, Texas,

“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division, said at the time. “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.”

To be sure, Samsung isn’t the only top chipmaker showing interest in the US. Taiwan Semiconductor Company (TSMC), which accounts for nearly 60% of the semiconductor market according to data from market researcher Counterpoint, is also said to be nearing completion of its new US plant.

TSMC also announced last year that it would construct 3 nanometer (3nm) advanced chips at its Arizona factory, with production to begin in 2024. BBC reported in December that TSMC will triply its investment in the US facility from $10 billion to $40 billion, making it one of the biggest foreign investments in US history.

Samsung, too, had announced plans to produce 3nm chips last year, and has plans to move to 2nm chips in 2025. Intel, which has been lagging behind its competitors for a while now, revealed its plans for advanced nodes in 2021, with plans to move to 3nm chips by 2025.

Like many other countries, the US has also announced incentives for chipmakers. The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, 2022, intends to provide incentives for technology companies to build semiconductor factories in the US. However, for the following 10 years, firms receiving federal funds for the same cannot build high-tech facilities in China. 

The ten-year ban on high-tech manufacturing in China, according to market analysts, will eventually force companies to India, Europe, and Vietnam. 

The CHIPS and Science Act aims to unlock billions of dollars in private sector semiconductor investment across the nation, including manufacturing crucial to national defence and key sectors. 

Additionally, the bill will ensure that the United States retains and improves its scientific and technical superiority.