Samsung reportedly plans to double its investment in Texas to $44 billion to make advanced computer chips needed for smartphones, artificial intelligence and national defense, with the company expected to save huge sums from critical components. are making a profit.
The South Korea-based technology giant plans to spend $20 billion to build a new chip production factory and new facilities for packaging, research and development. The Wall Street Journal reportedsaid a person familiar with the company’s plans.
The upgrades come at the company’s site in Taylor, about 30 miles north of the state capital Austin, where the company had already built a production hub that includes a $17 billion chip manufacturing plant and related facilities. .
Part of the funding for Samsung’s Texas expansion will come from the U.S. Chip Act, a bipartisan effort aimed at revitalizing domestic production of critical chips amid deteriorating diplomatic relations and increasing competition from China. It will be financed by billions of dollars in federal grants related to the broader law.
The subsidy package is reportedly set to be one of the largest ever received by a single company.
Samsung is one of the few companies, along with Intel and Taiwan Semiconductor Manufacturing Co., that has the know-how to make computer chips.
Representatives for Samsung did not respond to requests for comment.
The company plans to announce plans to expand spending in Texas at an event on April 15, the paper said.
The report emerged just a day after Samsung predicted strong growth in its upcoming quarterly results, supported by surging demand for chips.
Operating profit is expected to increase by 6.6 trillion won (equivalent to $4.89 billion).
This would represent a staggering 931% increase compared to the same quarter a year ago.
Sales are expected to increase by 11% to 71 trillion won.
Samsung will officially announce its financial results on April 15th.
