Samsung has announced its biggest investment in the U.S, a new $17 billion semiconductor Fab plant in Taylor, Texas. The manufacturing facility is hoped to improve the supply chain resilience of crucial logic chips. The prevailing chip shortage has impacted Samsung’s supply chain like other major tech companies, including Apple.
Currently, Samsung manufacturers OLED display panels for iPhone 12 and iPhone 13 models and 2021 MacBook Pro models. Reportedly, the South Korean company will also produce OLED panels for the 2022 MacBook Pro. However, Apple has been distancing itself from Samsung Electronics. Reportedly, Apple cancelled orders for periscope lens for the 2023 iPhone and OLED panels for the 2022 iPad Air.
Therefore, with a new semiconductor plant, Samsung is set to enter a bigger industry and compete with Apple’s long-term chip manufacturing partner, Taiwanese Semiconductor Manufacturing Company (TSMC), the most advanced chip foundry in the world.
With an advanced semiconductor Fab site in the U.S, Samsung ready to take on TSMC
As per the announcement, Samsung will manufacture chips built on advanced process technologies for mobile, 5G, HPC (high-performance computing), and AI (artificial intelligence). The primary focus of the company is to boost the production of advanced logic semiconductors for global customers to avert another chip shortage. Kinam Kim, Vice Chairman, and CEO, Samsung Electronics Device Solutions Division said:
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future. 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.”
Groundbreaking will be in 2022 and the facility is scheduled to be operational by 2024 and the establishment of the plant is expected to create jobs for local communities. The mega-investment is part of U.S. President Joe Biden’s effort to encourage domestic semiconductor manufacturing, an initiative TSMC is also a part of.
CEO of TSMC C.C. Wei confirmed that the company’s $12 billion factory in Arizona will start mass production in the first quarter of 2024 and the first batch of staff from the U.S is already under training in Taiwan. The facility in Arizona is part of TSMC’s $100 billion investment over the next three years to increase the production of chips at the request of the U.S. government.
