Friday, February 12th 2021

Samsung to Build $17 Billion Silicon Manufacturing Plant in the US by 2023

Samsung has been one of the world's biggest foundries and one of three big players still left in the leading-edge semiconductor process development and manufacturing. However, the Korean giant is always seeking ways to improve its offerings, especially for Western customers. Today, it is reported that Samsung has reportedly talked with regulators in Texas, New York, and Arizona about building a $17 billion silicon manufacturing facility in the United States. The supposed factory is going to be located near Austin, Texas, and is supposed to offer around 1800 jobs. If the deal is approved and Samsung manages to complete the project on time, the factory is supposed to start mass production in Q4 of 2023.

What process is Samsung going to manufacture in the new fab? Well, current speculations are pointing out to the 3 nm node, with Samsung's special GAAFET (Gate All Around FET) technology tied to the new node. The fab is also expected to make use of extreme ultraviolet (EUV) lithography for manufacturing. Samsung already has a facility in the US called S2, however, that will not be upgraded as it is still serving a lot of clients. Instead, the company will build new facilities to accommodate the demand for newer nodes. It is important to note that Samsung will not do any R&D work in the new fab, and the company will only manufacture the silicon there.
Source: AnandTech
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20 Comments on Samsung to Build $17 Billion Silicon Manufacturing Plant in the US by 2023

#2
TumbleGeorge
What is staff for normal us citizens? Yes I know more money for politicians to steal it.
Posted on Reply
#3
R0H1T
evernessince
I'll believe it when I see it.
Yes I doubt Samsung will go ahead with it unless there's some major "tax breaks" offered by one of the possible sites.
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#4
erocker
*
It's probably happening. TSMC is already building a fab in Arizona and the Feds are currently working to get more here through tax breaks and other things to make it appealing. Now, there's Samsung, so apparently it's working.
Posted on Reply
#5
Bones
evernessince
I'll believe it when I see it. At least the bloated pineapple is no longer around to take credit for everything.
The current bunch had nothing to do with it happening either.
These things are agreed upon years in advance so.... There you go.

I'm like others here, I'll believe it when it actaully happens.
Posted on Reply
#6
evernessince
Bones
The current bunch had nothing to do with it happening either.
These things are agreed upon years in advance so.... There you go.

I'm like others here, I'll believe it when it actaully happens.
Oh I'm not implying there are. Quiet is nice.
Posted on Reply
#7
TumbleGeorge
erocker
TSMC is already building a fab in Arizona
TSMC were forced, extorted from USA to do that.
Edit because not prove: It's my conclusion I feel that! Has not facts and arguments, maybe. USA never use force - for nothing! ... :D
Posted on Reply
#8
erocker
*
TumbleGeorge
TSMC were forced, extorted from USA to do that.
Can you elaborate on that?

*Okay, you're full of it. Hot take I guess.
Posted on Reply
#9
DeathtoGnomes
by 2023? thats pushing it pretty fast all things considered.
Posted on Reply
#10
the54thvoid
TumbleGeorge
TSMC were forced, extorted from USA to do that.
TSMC isn't a company that can be extorted to set up business. It already has ops across the globe. Don't confuse it with Chinese businesses affected by an ongoing trade argument.

Also, if you're going to make such statements, please back them up with verifiable proof.
Posted on Reply
#11
Aquinus
Resident Wat-man
TumbleGeorge
Edit because not prove: It's my conclusion I feel that! Has not facts and arguments, maybe. USA never use force - for nothing! ... :D
So basically this is your opinion with no basis in fact?
Posted on Reply
#12
DeathtoGnomes
Extorted/Extortion is the wrong word here, TSMC might have been blackmailed, bribed or even threatened to leave the USA. Without all the facts about such an action, I think its safe to say we should ignore that comment until there is a reference.
Posted on Reply
#13
TechLurker
I feel the article is lacking some details, as to what needs to happen to make this a reality. I'll just directly quote Ananadtech:
There are four criteria that the new location must meet in a bid to make sense for Samsung's leading-edge fab, according to the documents filed with the Texas authorities: access to talent, existing semiconductor manufacturing ecosystem, speed to market, and strong public- private partnership (i.e., incentives). Samsung already has a fab in Texas, so it already has talent and a supplier ecosystem in the state. By contrast, it will have to fight both for talent and supplies in Arizona (against Intel and TSMC) and New York (against GlobalFoundries).

To build a leading-edge manufacturing facility, Samsung needs rather huge incentives from authorities. In particular, Samsung is requesting combined tax abatements of $805.5 million over 20 years from Travis County and the city of Austin, according to Reuters, which essentially means that Samsung demands a 100% tax abatement from the county and 50% from the city. In addition, Samsung is seeking $252.9 million in tax breaks from the Manor school district based on the Texas Tax Code that allows property tax breaks for economic development projects. So far, no company has received a 100% tax abatement anywhere in the USA, according to market observers. Nonetheless, the deal still makes a lot of sense for the state, and there is likely going to be interest from the federal government as well.
"As there are other highly competitive markets seeking to win this expansion deal, it is imperative that our state and local governments work together to ensure Austin comes out on top," said Amber Gunst, CEO of the Austin Technology Council. "Not only does this provide 1,800 jobs that will be available to Central Texans of all education and skill levels, this expansion creates an even stronger relationship between Samsung and Austin, a relationship we value immensely."
Samsung expects the new fab to have an economic output of around $8.642 billion and salaries for permanent workers to total $7.323 billion in the first 20 years of its operation.
Texas always loves bringing in more jobs, even if it comes at the detriment of their other obligations (taxing to maintain schools notably, then complaining they don't have enough money to share and we have countryside schools left with 5-10 year old history books), so I can see the deal potentially happening. Further, Austin itself is becoming one of the new "Silicon Valley"s of the modern times, and Austin already has an older Samsung plant with plenty of space for a new, separate facility, and is one of the few places right now where Samsung can headhunt talent without competing with GloFo (NY) or TSMC (Arizona, in the future) which the Anandtech article also discusses.

Samsung doesn't realistically have any other place to turn to stateside without having to also put in even more infrastructure work (negotiating of local, regional, and international supplier contracts), unless some place bends over backwards to try and give them everything (which worked about as well as it did for Wisconsin and their Foxconn vanity project). Any threats to move to other states is more than likely to just be bargaining tactics. Also, another thing worth mentioning is that this plant is supposedly a pure production plant, meaning no Node R&D, just Samsung 5nm or 3nm, depending on what the finalized plan will be.

Lastly, it doesn't seem like Samsung has any immediate interest in applying for DoD contracts, although TSMC, via their Arizona plant, has intentions of applying for such contracts (partly helped along with some of the political gaming from the 45th administration, which hard-landed TSMC in Arizona in the first place). If they do though, they would be able to provide the US Government with equipment partially or fully built with a modern, leading edge node (assuming it does become Samsung 5nm or 3nm).
Posted on Reply
#14
TumbleGeorge
Aquinus
So basically this is your opinion with no basis in fact?
Sorry I'm not Edward Snowden and has not access to confidential documents.
Posted on Reply
#15
moproblems99
TechLurker
I feel the article is lacking some details, as to what needs to happen to make this a reality.
I try not to pile on the news people here, they do what they can but this article highlights the appearance of lack of journalistic ability here.
TumbleGeorge
Sorry I'm not Edward Snowden and has not access to confidential documents.
Phew.
Posted on Reply
#16
bogmali
In Orbe Terrum Non Visi
Some of you are just itching for that political stance comment which has no bearing with the topic. Threadbanned issued :rolleyes:
Posted on Reply
#17
bonehead123
Hopefully, by the time this plant goes online, they will be on 3, 2 or even 1nm process nodes, and we might actually get a few somewhat up to date chips, instead of those tired-assed, pre-historic 14+++++++++++++++++++++++++++ & 10++++++++++ nm crap from team blue....

fingers crossed :D
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