Samsung Is Considering Investing In The US $17 Billion Chip Factory

Mar 04, 2021 News

Samsung Is Considering Investing In The US $17 Billion Chip Factory

According to reports, Samsung is considering investing in a US$17 billion chip factory in the United States and viewing four plant sites. Samsung also disclosed in a recent filing that it is seeking to obtain a total of $1.48 billion in tax deductions from Austin and Travis County within 20 years, a significant increase from the $805.5 million mentioned in the previous document.

According to foreign media reports, the Samsung Electronics factory had no spare capacity due to the explosion of orders. The company may expand its outsourcing business to UMC and GlobalFoundaries for general-purpose computer chips.

According to the forecast of the fourth quarter of 2020, wafer foundry rankings announced by TrendForce Consulting's Toptech Industry Research Institute, the fourth quarter's demand for the foundry market is still strong. The production capacity of various industries continues to be fully loaded, and the tight capacity makes prices increase. The effect drives the overall revenue upward. It is estimated that in the fourth quarter of 2020. The top ten global wafer foundry industry revenue will exceed 21.7 billion U.S. dollars U.S. annual growth of 18%. The top five market shares are Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung, UMC, GlobalFoundaries, SMIC.

At the end of last year, the global shortage of chip components began to appear, which caused the mobile phone and automobile industries' assembly lines that rely on chips to come to a standstill. Analysts believe that the shortage of chips has a severe impact on the automotive industry because the automotive industry has been relying on the "just in time" supply chain for decades to save costs.

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