Asia Express - Consumer Electronics
Samsung Plans to Build US$17 Billion New Chip Factory in the United States
March 04, 2021

Samsung recently announced that the company considers building a new chip factory in the United States for US$17 billion, Reuters reported on March 4. The company has been looking at two locations in Arizona, one in Austin, and one in New York, and has yet to made final decision. The new site will help the company produce advanced logic devices for its chip contract manufacturing clients. Basded on the documents filed by Samsung on February 26, the company aims to receive significant property tax abatements, significant grants, and/or refundable tax credits from these potential cities and states. For instance, Samsung expects a tax reduction of almost US$1.5 billion over 20 years from Austin, up from the current US$806 million. The fully-loaded chip production capacity due to rising demand for notebooks and HPCs (High Performance Computing) amid the COVID-19 outbreak is expected to continue to bolster Taiwanese semiconductor industry growth in the first half of 2021, according to MIC (Market Intelligence & Consulting Institute), a major government think tank and IT research institute in Taiwan, and a division of III (Institute for Information Industry).