Tech giant Samsung is pursuing a long-term strategy in the Texas area as it builds a $17 billion chip manufacturing factory in Taylor that could result in a potential investment of nearly $200 billion.
Samsung’s plans, first reported by the Austin BusinessJournal, are calling for an additional $192.1 billion in investment in the Austin area over several decades that would create at least 10,000 new jobs in 11 new chip fabs. These facilities would be located at Taylor’s new location and at the company’s existing location in northeast Austin.
The first of the 11 new plants would therefore not be completed before 2034 business journal.
“Samsung has long been an employer of choice in the Austin market, offering high wages, great benefits and a great work environment. All of this will happen on steroids in the not-too-distant future, adding an historic boost to Austin’s already booming economy,” John Boyd Jr., a business site selection consultant, tells CultureMap.
Samsung’s preliminary plans were revealed in filings with the State of Texas seeking possible financial incentives for the more than $190 billion expansion. The South Korean conglomerate says the filings are part of the company’s long-term plan for US chip manufacturing facilities.
Given that Samsung’s 11 new plants would take decades to complete, there is no certainty at this point that any part of the potential $192.1 billion expansion will ever be built.
Last November, Samsung announced it would build a $17 billion chip manufacturing facility in Taylor to complete its semiconductor operations in northeast Austin. Construction is underway and completion is scheduled for 2024. Boyd announced last year that the Taylor project will spark one “economic tsunami” in the quiet suburb of Williamson County.
The Taylor plant, which is expected to employ more than 2,000 people, is one of the largest foreign trade development projects in US history. The impact of a nearly $200 billion cluster of 11 new chip manufacturing facilities would far dwarf the Taylor project.
The Taylor factory will produce advanced chips that support mobile and 5G capabilities, high-performance computing and artificial intelligence.
This article originally ran on CultureMap.