Samsung sets sights on nearly $200 billion expansion in Austin area
As it builds a $17 billion chipmaking factory in Taylor, tech giant Samsung is eyeing a long-term strategy in the Austin area that could lead to a potential investment of close to $200 billion.
Samsung’s plans, first reported by the Austin Business Journal, call for an additional $192.1 billion investment in the Austin area over several decades that would create at least 10,000 new jobs at 11 new chipmaking plants. These facilities would be at the new Taylor site and the company’s existing site in Northeast Austin.
The first of the 11 new plants wouldn’t be completed until 2034, according to the Business Journal.
“Samsung has a history already in the Austin market as an employer of choice, providing high wages, great benefits, and a great working environment. All of this will be on steroids in the not-too-distant future, creating a historic boost to the already booming Austin economy,” John Boyd Jr., a corporate site selection consultant, tells CultureMap.
Samsung’s preliminary plans were revealed in filings with the State of Texas seeking possible financial incentives for the more than $190 billion expansion. The South Korean conglomerate says the filings are part of the company’s long-range planning for U.S. chipmaking facilities.
Given that Samsung’s 11 new plants would be decades in the making, there’s no certainty at this point that any part of the potential $192.1 billion expansion will ever be built.
Last November, Samsung announced it would build a $17 billion chipmaking factory in Taylor to complete its semiconductor operations in Northeast Austin. Construction is underway, with completion set for 2024. Boyd proclaimed last year that the Taylor project will trigger an “economic tsunami” in the quiet Williamson County suburb.
The Taylor facility, which is expected to employ more than 2,000 people, ranks among the largest foreign economic development projects in U.S. history. The impact of a nearly $200 billion cluster of 11 new chipmaking plants would far eclipse the Taylor project.
The Taylor factory will produce advanced chips that power mobile and 5G capabilities, high-performance computing, and artificial intelligence.