Home Business Samsung Electronics, US foundry to invest 20 trillion won announced this week… likely in Taylor City, Texas

Samsung Electronics, US foundry to invest 20 trillion won announced this week… likely in Taylor City, Texas

by news dir

This week, Samsung Electronics will announce the construction site for the second US semiconductor factory (foundry) in which Samsung Electronics will invest US$17 billion (about 20 trillion won). Taylor City, Texas, is one of the most likely candidates. When Vice Chairman Lee Jae-yong, who is visiting the US, returns to Korea on the 24th, it is expected that the factory candidate will be finally announced. During this business trip, Vice Chairman Lee met with political figures to discuss global issues and also played the role of a ‘private diplomat’.

<지난 20일(현지시간) 미국 워싱턴주 마이크로소프트 본사에서 만난 이재용 삼성전자 부회장(오른쪽)과 사티아 나델라 마이크로소프트 CEO. [자료:삼성전자]>

According to Samsung Electronics on the 21st, Samsung Electronics Vice Chairman Lee Jae-yong, who is visiting the United States, met with senior White House officials and key members of the US Congress one after another in Washington DC to discuss overall issues in the semiconductor supply chain, including the second semiconductor plant.

Vice Chairman Lee met with key members of the Federal Assembly in charge of the semiconductor incentive bill on the 18th (local time) and requested cooperation, such as passing the semiconductor incentive bill. A source from the US Congress who met with Vice Chairman Lee said, “I know that the factory candidates will be compressed and officially announced this week (between this time).”

Samsung Electronics announced a plan to establish a second foundry plant worth $17 billion and is in the process of finalizing the site selection. A likely candidate is Taylor, Texas. Taylor City has decided to offer huge incentives to Samsung Electronics when it builds a foundry plant.

If Samsung Electronics confirms the establishment of a US foundry plant, the US can significantly expand its semiconductor production infrastructure in the country. The United States, which is the world’s best in semiconductor design, was evaluated to be inferior to Asia in semiconductor manufacturing and production.

It is for this reason that TSMC and Intel, including Samsung Electronics, are actively seeking investment in US semiconductor factories. By securing domestic production infrastructure, it is possible to strengthen the semiconductor development and local manufacturing ecosystem of major US fabless such as Qualcomm, Broadcom, and IBM. Samsung Electronics is also positive in that it can establish a close cooperation system with local customers.

Vice Chairman Lee then visited the White House in Washington DC on the 19th and met with key White House officials. It was found that they discussed ways to solve the problem of the semiconductor supply chain, which has emerged as a global issue, and the role of Samsung. Samsung Electronics is expected to respond to concerns about the US semiconductor supply chain by expanding its local production capacity to be announced this week.

After the Washington DC meeting, Vice Chairman Lee went to the western United States to meet with executives of global ICT companies to discuss ways to cooperate in future strategic projects. On the 16th and 17th, I met Moderna and Verizon executives, and on the 20th, I visited representative ICT companies such as Microsoft (MS) and Amazon.

Vice Chairman Lee met with Microsoft CEO Satya Nadella and shared opinions about cooperation on next-generation technologies such as semiconductors, mobile, virtual reality (VR) and augmented reality (AR), and metaverse, as well as software ‘ecosystem expansion’. Vice Chairman Lee then visited Amazon and exchanged opinions on next-generation promising industries such as AI and cloud computing.

This is Lee’s first visit to the United States in five years and four months since attending the Sun Valley Conference in July 2016. In the business circle, this visit to the US was evaluated as having played a role of a ‘private diplomat’ contributing to efforts to stabilize the global supply chain and to promote friendship between the two countries by meeting local businessmen as well as key political figures in Washington DC as Samsung’s president.

Reporter Bongkyun Ham [email protected], Reporter Dongjun Kwon [email protected]

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