Rival TSMC is expected to build a $12 billion chip plant in Arizona by 2024.
What you need to know
- A new report from Bloomberg claims Samsung could invest more than $10 billion to build a new chipmaking plant in Austin.
- The proposed facility will be capable of producing chips as advanced as 3nm.
- Samsung is hoping to catch up with TSMC and win more American clients with the new plant.
Samsung is planning to invest over $10 billion to build its most advanced logic chipmaking plant in Austin, according to a report from Bloomberg. The South Korean tech giant is hoping that the investment will help it win more American clients and also catch up with rival chipmaker TSMC. According to research by Citibank, Samsung's existing facility in Texas is "too small" to meet the increasing orders from companies like Qualcomm, Intel, and Tesla.
As per people familiar with the matter, the plans are currently in preliminary stages and subject to change. The proposed chipmaking plant in Austin, Texas, will be capable of fabricating chips as advanced as 3nm in the future. Samsung is hoping to begin construction this year, install major equipment from next year, and begin manufacturing of chips at the facility as early as 2023.
Samsung's envisioned Austin plant would be its first in the U.S. to use extreme ultraviolet lithography (EUV), which is going to be the standard for next-gen chips. The company aims to become the biggest player in the chip industry and has plans of investing $116 billion into its foundry and chip design businesses over the next ten years.
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