Samsung announced yesterday that it will invest $17 billion to build a foundry in the United States. The new plant will be located in Tyler, Texas, and will be ready for mass production in 2024.
Samsung will build a new foundry in the U.S. that is expected to begin production in 2024
We are currently in a major chip manufacturing crisis. The COVID-19 pandemic has caused major problems for the industry. However, the real problem is a major lack of planning on the part of the industry. Back in 2018, there were reports that TSMC was unable to meet AMD’s demand for chips.
There is very little information about Samsung’s new foundry in the US. It is suggested that chips for smartphones, 5G, high-performance computing, and artificial intelligence could be produced.
Samsung’s U.S. foundry could be based on the 5nm node. Note that this process will not be the most advanced in the world. Both TSMC and Samsung itself should already be working with the 3nm process. It could even be that TSMC is already working with the 2nm process.
Samsung’s 5nm process and process quality would be equivalent to TSMC’s 5nm node, which the company produces in the US. A big question is which customers will use this new foundry.
According to some rumors, AMD is interested in Samsung’s 5nm node. This 5nm node will still be very important for AMD in 2024. The interesting thing is that AMD would save a lot of costs because it would not have to import processors and graphics cards. Plus, they could sell the “Made in America” slogan, which always looks good for the US market.
Of course, aside from Samsung’s $17 billion investment, everything else is pure speculation. We will have to wait a few more years for more concrete information.
Texas Governor Greg Abbott said in announcing the project on the 23rd, “This is the largest foreign direct investment ever made in Texas.” The new chip plant is expected to create about 1,800 jobs, according to the Wall Street Journal. To attract Samsung to invest in the plant, the city of Tyler offered very generous terms, equating to a property tax break of up to 92.5 percent in the first decade, the report said.
The shortage of chips has become a business obstacle and a serious issue for U.S. national security, the report said. The lack of semiconductor supply due to the New Crown pneumonia outbreak has stalled the production of new cars and electronics for more than a year. New problems of economic and national security have ensued as many U.S. companies rely on chips produced overseas.
What do you think of Samsung’s $17 billion investment in the United States, which is scheduled to come on stream in 2024?