Samsung considering building 11 chip factories in Texas, could be worth $200B: report
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Samsung (OTCPK:SSNLF) is considering building 11 chip factories in Texas over the next two decades, which could be worth nearly $200B and create more than 10,000 jobs, Austin-American Statesman reported, citing state documents.
South Korea-based Samsung (OTCPK:SSNLF) recently announced plans to build a $17B semiconductor factory in Taylor, Texas, but the 11 potential new plants could be spread out over the Lone Star State. Two would be in Austin and the remaining nine would be in Taylor.
Of the 10,000 jobs, roughly 1,800 would be in Austin and the other 8,200 would be in Taylor.
The news outlet noted that most of the new fabs would be running by 2034, but two could take as long as 2042 to get up to production, citing the documents.
Samsung (OTCPK:SSNLF) currently makes chips for clients such as IBM (IBM), Nvidia (NVDA), Qualcomm (QCOM) and itself, among others.
The company is looking for tax breaks with the Taylor and Manor school districts to build the facilities, the news outlet noted, citing the 11 applications that are a part of the state's Chapter 313 incentives program.
The news of the potential $200B investment comes shortly after the Senate voted 64-34 to advance legislation to aid the domestic semiconductor industry. The legislation would give $54B in subsidies to encourage manufacturers to build foundries in the U.S., as well as a new, four-year 25% tax credit.
Citi analyst Atif Malik noted that the bill, which was praised by House Speaker Nancy Pelosi, could pass as soon as next week. Malik added that the firm's base case for wafer fab equipment in 2023 is $80B, but it could go as high as $84B if the bill is "funded on time and Tier 1 foundries maintain flat capex."
Earlier this month, Samsung Electronics (OTCPK:SSNLF) estimated its April-June quarter resulted in its best profit since 2018, thanks in part to strong sales of memory chips to server customers.