The White House welcomed Samsung's announcement on Tuesday that it will build a new semiconductor manufacturing plant in the state of Texas, considering this a move that will help protect supply chains in the United States. The White House stated in a release that securing American supply chains is a "top priority" for President Joe Biden and his administration, adding that Samsung's announcement contributes to "revitalizing our manufacturing base and creating good jobs here at home."
On Tuesday, Samsung announced plans to invest nearly $17 billion in a semiconductor facility in Taylor, Texas, marking its latest chip factory this year amid a global supply shortage. Samsung noted that the factory will be its largest investment in the United States and will produce high-quality chips used in smartphones and other devices, as well as for artificial intelligence applications.
The White House's statement highlighted that "the U.S. administration is working around the clock with Congress and the private sector to generate additional manufacturing capacity for semiconductors and ensure that we do not face any shortages again." The statement added that "today's announcement is the result of the administration's ongoing work and President Biden's meeting with South Korean President Moon in May, where the two leaders announced that they would facilitate mutual and complementary investments in semiconductors."
It was noted that "there is still more work to do to ensure that the United States remains the most innovative and productive country on Earth." Samsung mentioned in its announcement on Tuesday that construction of the factory is scheduled to begin next year, with chip production expected to start in the second half of 2024, according to the Wall Street Journal, which indicated that around 1,800 jobs are expected to be created.
To attract the tech giant, the state of Texas offered incentives including property tax exemptions of up to 92% of the tax value for the first ten years. The global chip shortage has undermined various industries, from smartphones and home appliances to automobiles. Samsung, the world's largest semiconductor manufacturer by revenue, plans to invest more than $205 billion over the next three years, prioritizing chip production.
