Samsung is planning to build a $17 billion semiconductor factory in Taylor, Texas, amid a global shortage of chips used in phones, laptops, cars and other electronic devices.
The estimated cost of the facility is in the neighborhood of $17 billion and is expected to create as many as 1,800 jobs.
Taylor, a city located in Williamson County and about 30 miles northeast of Austin, has a population of just over 16,000 people, according to 2020 census data. The proposed site is 1,200 acres. Samsung has an existing chip facility in Austin.
Samsung isn’t anticipated to begin producing chips at the Taylor facility until 2024, and it’s believed that in addition to chips, processors will be produced there.
The announcement is coming amid a global shortage of computer chips. According to the Associated Press, the shortage has been rippling through various markets since the summer of 2020 It has made it difficult for schools to buy enough laptops for students forced to learn from home, delayed the release of popular products such as the iPhone 12 and created mad scrambles to find the latest video game consoles such as the PlayStation 5.
The shortage additionally has had a dramatic effect on the auto industry. Factories have been forced to shut down because there are not enough chips to finish building vehicles that rely on them.
The Wall Street Journal notes that the City of Taylor has offered Samsung some tax incentives to locate the plant there including a tax break of more than 90% for the first 10 years.
The company also considered locations in Arizona, New York and in South Korea for the plant. An official announcement from Samsung has not yet been made.
The Associated Press contributed to this report.