Asia Pacific

Samsung considers Austin for $17 bln chip plant -documents

2 minute read

The logo of Samsung Electronics is seen at its headquarters in Seoul, South Korea, April 4, 2016. REUTERS/Kim Hong-Ji

Register now for FREE unlimited access to

Feb 4 (Reuters) - Samsung Electronics Co Ltd (005930.KS) is considering Austin, Texas, as the site for a new $17 billion chip plant that the South Korean firm said could create 1,800 jobs, according to documents filed with Texas state officials.

The documents say the project would involve building out 7 million square feet (650,000 square meters) of new space on a 640-acre (259-hectare) site that the company already owns. The company has an existing chip plant in Austin that makes computing chips.

Samsung's filing said it plans to make "advanced logic devices" for outside customers at the facility, meaning it would aim to make the smallest, fastest kinds of computing chips.

Register now for FREE unlimited access to

While Intel Corp (INTC.O) makes such chips for itself in the United States, most contract manufacturers who make them for outside clients, such as Taiwan Semiconductor Manufacturing (TSMC) Co Ltd (2330.TW) and Samsung, maintain most of their facilities in Taiwan and Korea, respectively.

Those facilities make chips for American customers such as Apple Inc (AAPL.O) and Qualcomm Inc (QCOM.O). TSMC last year disclosed plans for a $12 billion chip plant in Arizona expected to come online in 2024.

Samsung said in its filings that if Austin is selected, the company would break ground on the site in the second quarter of this year and that the plant will become operational in the third quarter of 2023.

The filings with Texas officials were made public Thursday and earlier reported by the Austin American-Statesman newspaper.

Register now for FREE unlimited access to
Reporting by Stephen Nellis and Hyujnoo Jin in San Francisco; Editing by Aurora Ellis

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters