Samsung building an advanced chip making plant in Texas

Bloomberg is reported Samsung is considering spending over US $10 billion to build an advanced new logic chip making plant in Austin, Texas. As per the report, the plant may be capable of making 3 nm processors. This would be Samsung’s third worldwide use of extreme ultraviolet lithography technology in its chip production. The report conveys that if the plants go ahead, construction could begin this year and operations could commence in 2023.

An advanced US based Samsung fabrication plant could grant Samsung new contracts amidst ongoing trade tensions between the US and China. This would also bring healthy competition between Samsung and TSMC. TSMC manufactures 5nm processor chips for Apple. Notably, TSMC is also investing in a US-based plant with a US $ 12 billion locations in Arizona that’s expected to start making chips by 2024.

The report conveys Samsung is planning to invest the US $ 116 billion over the next decade into non-memory chips. This was first reported by Reuters. According to Nikkei, chips produced in Austin might be less advanced 14 nm process nodes.

Note that Samsung’s plans for the plant are reportedly in their preliminary stages. As of now, only a few preliminary steps have been taken. Back in December 2020, Nikkei reported, Samsung acquiring a 440000 square meter plot in Austin where it had a manufacturing presence since the 90s.

As of now, Samsung manufactures chips for Qualcomm and Nvidia it is close to a new deal with Intel. The Korea Times reported that Samsung could produce 15000 graphics chips for Intel from the second half of this year at Samsung’s Austin plant. WSJ reported Intel CEO Pat Gelsinger e said Intel may outsource the manufacturing of “certain technologies and products” in 2023.

Bloomberg pointed out in its report that Samsung is capitalizing on a growing trend for companies like Microsoft, Amazon, and Google to design their own chips and outsource manufacturing to companies like TSMC and Samsung.