Image: Samsung

Samsung is reportedly considering spending $10 billion to build a new chip manufacturing plant in Texas. This is according to sources with Bloomberg, which noted that the investment could help the Korean electronics giant catch up with the world’s most successful and cutting-edge semiconductor manufacturing company, TSMC.

“The world’s largest memory chip and smartphone maker is in discussions to locate a facility in Austin, Texas, capable of fabricating chips as advanced as 3 nanometers in the future,” Bloomberg’s sources said. “Plans are preliminary and subject to change but for now the aim is to kick off construction this year, install major equipment from 2022, then begin operations as early as 2023.”

“If Samsung really wants to realize its goal to become the top chipmaker by 2030, it needs massive investment in the U.S. to catch up with TSMC,” said Greg Roh, senior vice president at HMC Securities. “TSMC is likely to keep making progress in process nodes to 3nm at its Arizona plant and Samsung may do the same. One challenging task is to secure EUV equipment now, when Hynix and Micron are also seeking to purchase the machines.”

TSMC announced that it would be building a semiconductor fab in Arizona back in May 2020. The facility, which will leverage the company’s 5-nanometer technology, is expected to produce 20,000 semiconductor wafers per month and create over 1,600 jobs.

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29 Comments

  1. [QUOTE=”Dan_D, post: 28162, member: 6″]
    Ugh….Austin.
    [/QUOTE]
    Gotta build where there is an abundance of talent to choose from.

  2. [QUOTE=”Strelok, post: 28164, member: 237″]
    Gotta build where there is an abundance of talent to choose from.
    [/QUOTE]

    It’s nothing but hipsters and college kids over there.

  3. I was born in El Paso, haven’t been back to Texas since ’89 though. No idea what sh1t is like today. Dan is certainly making Austin sound wonderful, haha.

    So, a Samsung chip-making plant in the USA huh? Interesting…

  4. [QUOTE=”DrezKill, post: 28173, member: 230″]
    I was born in El Paso, haven’t been back to Texas since ’89 though. No idea what sh1t is like today. Dan is certainly making Austin sound wonderful, haha.

    So, a Samsung chip-making plant in the USA huh? Interesting…
    [/QUOTE]

    The restaurant scene is amazing. Aside from that, it’s basically shit. The town is spread over a large area for the population density that it has. The problem is, they don’t maintain the roads for shit. There aren’t enough of them and given the population explosion, traffic is horrendous given how small the place is. There isn’t much work to be had out there unless you work for a select few companies. (Which I did, I worked at IBM.) It’s a college town and has all the negatives that go with that. It’s also extremely liberal out there. Unless you want to go out to eat or get drunk on sixth street, there isn’t much to do out there.

  5. [QUOTE=”Dan_D, post: 28175, member: 6″]
    The restaurant scene is amazing. Aside from that, it’s basically ****. The town is spread over a large area for the population density that it has. The problem is, they don’t maintain the roads for ****. There aren’t enough of them and given the population explosion, traffic is horrendous given how small the place is. There isn’t much work to be had out there unless you work for a select few companies. (Which I did, I worked at IBM.) It’s a college town and has all the negatives that go with that. It’s also extremely liberal out there. Unless you want to go out to eat or get drunk on sixth street, there isn’t much to do out there.
    [/QUOTE]
    What’s the issue with the college town vibe? Having lived in Madison, WI and Fort Collins, CO, I really came to enjoy the general college town feel. Always plenty to do, the, uh, sights, are generally superb, and was never let down with food options or quality. It’s Dramatically better than the generic suburbia I live in now – sprawl as far as the eye can see, can’t walk to anything in a reasonable time, and the food is all crappy chain food.

  6. I have no issues with the city they picked and imagine they have done their homework in regards to locations. I just hope this isn’t another deal we hear about that goes no where. Also no issues here with the college town vibe either.

  7. Samsung, ok. Not a US company.
    A Korean company sees value in the US, its people and its laws and so on.
    American companies that got big fat and lazy from it, see no value.
    Smart move though.
    Though they might Fox- con it too.
    Hopefully not.

  8. [QUOTE=”Endgame, post: 28179, member: 1041″]
    What’s the issue with the college town vibe? Having lived in Madison, WI and Fort Collins, CO, I really came to enjoy the general college town feel. Always plenty to do, the, uh, sights, are generally superb, and was never let down with food options or quality. It’s Dramatically better than the generic suburbia I live in now – sprawl as far as the eye can see, can’t walk to anything in a reasonable time, and the food is all crappy chain food.
    [/QUOTE]

    The problem is, it’s Austin. I don’t want to delve into politics, but it’s liberal as hell. It’s our own Little California over there. You have a huge economic divide between an upper class and poor college kids. You have only one alternative to the over crowded highways, and its overcrowded. There really isn’t much to see and do in the city. Besides eating and getting drunk you have nothing. I found it one of the most boring places I ever visited.

    I spent several weeks out there training with IBM and didn’t care for it. It’s my least favorite city in Texas. Mostly, the liberal attitude which is compounded by two factors. The massive amount of Californian transplants and college kids.

    No thanks.

  9. [QUOTE=”Dan_D, post: 28205, member: 6″]
    The problem is, it’s Austin. I don’t want to delve into politics, but it’s liberal as hell. It’s our own Little California over there. You have a huge economic divide between an upper class and poor college kids. You have only one alternative to the over crowded highways, and its overcrowded. There really isn’t much to see and do in the city. Besides eating and getting drunk you have nothing. I found it one of the most boring places I ever visited.

    I spent several weeks out there training with IBM and didn’t care for it. It’s my least favorite city in Texas. Mostly, the liberal attitude which is compounded by two factors. The massive amount of Californian transplants and college kids.

    No thanks.
    [/QUOTE]
    I guess I don’t know what defines an extremely liberal city – I was never bothered by anything visiting Boulder, which is supposed to be quite liberal as well.

    for things to do, I grew up in a “more corn and cows then people” area 60 minutes away from the nearest mall / theater, so I’m happy with a bowling alley, a movie theater, and a true luxury, a game store in a town.

    as for Samsung, I assume they are more put together than Foxconn, but given how the Foxconn thing went down in WI, I’d want to put them on a serious hook so they didn’t just back out after the area sinks a bunch of money into infrastructure for them.

  10. [QUOTE=”Endgame, post: 28208, member: 1041″]
    I guess I don’t know what defines an extremely liberal city – I was never bothered by anything visiting Boulder, which is supposed to be quite liberal as well.

    for things to do, I grew up in a “more corn and cows then people” area 60 minutes away from the nearest mall / theater, so I’m happy with a bowling alley, a movie theater, and a true luxury, a game store in a town.

    as for Samsung, I assume they are more put together than Foxconn, but given how the Foxconn thing went down in WI, I’d want to put them on a serious hook so they didn’t just back out after the area sinks a bunch of money into infrastructure for them.
    [/QUOTE]

    Everyone you talk to it seems (outside of the IT world) tends to have left leaning viewpoints. They tend to be on the more extreme end of the spectrum too. It can make even casual conversations draining if you don’t share these views. It’s not the end of the world, but it wouldn’t be somewhere I’d want to live. Not only that, but Californian’s have been driving the cost of living up there more than anywhere else in Texas.

  11. [QUOTE=”Dan_D, post: 28220, member: 6″]
    Everyone you talk to it seems (outside of the IT world) tends to have left leaning viewpoints. They tend to be on the more extreme end of the spectrum too. It can make even casual conversations draining if you don’t share these views. It’s not the end of the world, but it wouldn’t be somewhere I’d want to live. Not only that, but Californian’s have been driving the cost of living up there more than anywhere else in Texas.
    [/QUOTE]
    Had the same issue with Californian’s driving up the cost of housing in Colorado too. One of our neighbors at the time started at cisco in like 88. They sold all their stock in 2000, sold their house for 4 or 5x what they paid for it, and retired before age 40. Moved to Colorado and offered cash without inspection just because the cost of a house was so much less. That trend happened for quite a while, and I guess over the past 10 years or so property value has doubled.

  12. Property value in Dallas isn’t doing bad either. Has doubled and and continuing to grow since 2010.

    The reason they are putting the Plant in Austin is AMD is there, Apple is there, and Dell is there. So there is a good pool of talent to pull from. It’s like IT service companies being in DFW (Plano), or Telco companies being in the telcom corridor in Dallas as well. Some Oil and Gas but the majority of that is in the Houston metroplex area.

    Austin is the place in Texas with the focus on that area of industry. And yes their housing prices are becoming bonkers.

  13. I first read that as Samsung was going to build an S10, I was hoping they’d go boosted LSX.

    I have disappointed…..

  14. IMAGINE the cost savings… lets say samsung builds a big ass plant here in Austin Texas or really just outside of it. AMD contracts with them to build CPU’s and GPU’s.. THEN passes the savings on to manufacturers (AIB’s) to assemble in the US… and we get to buy cards 10% cheaper than the imported ones. (why not 25% Because part of that is increased cost of labor in the US.).

  15. [QUOTE=”Grimlakin, post: 28235, member: 215″]
    IMAGINE the cost savings… lets say samsung builds a big *** plant here in Austin Texas or really just outside of it. AMD contracts with them to build CPU’s and GPU’s.. THEN passes the savings on to manufacturers (AIB’s) to assemble in the US… and we get to buy cards 10% cheaper than the imported ones. (why not 25% Because part of that is increased cost of labor in the US.).
    [/QUOTE]
    They would probably charge more, because U.S.A. made stuff is better ya know.

  16. [QUOTE=”Grimlakin, post: 28223, member: 215″]
    Austin is the place in Texas with the focus on that area of industry. And yes their housing prices are becoming bonkers.
    [/QUOTE]

    Becoming? LOL. Austin has been stupidly expensive for as long as I can remember. Basically my same house in Plano would cost at least double anywhere near Austin proper. That’s why the ‘burbs are so popular down there now… Round Rock etc.

    I’m a little shocked Samsung isn’t looking at North Dallas / Plano / McKinney. They already have presence / buildings around here and it has to be cheaper than Austin. And DFW has similar talent pool as Austin.

  17. [QUOTE=”Burticus, post: 28239, member: 297″]
    Becoming? LOL. Austin has been stupidly expensive for as long as I can remember. Basically my same house in Plano would cost at least double anywhere near Austin proper. That’s why the ‘burbs are so popular down there now… Round Rock etc.

    I’m a little shocked Samsung isn’t looking at North Dallas / Plano / McKinney. They already have presence / buildings around here and it has to be cheaper than Austin. [B]And DFW has similar talent pool as Austin[/B].
    [/QUOTE]

    Probably not, hence they are sticking with Austin. They already have a site there IIRC. Apple, AMD, IBM and a bunch of other companies have campuses there, so it makes sense.

  18. [QUOTE=”Burticus, post: 28239, member: 297″]
    Becoming? LOL. Austin has been stupidly expensive for as long as I can remember. Basically my same house in Plano would cost at least double anywhere near Austin proper. That’s why the ‘burbs are so popular down there now… Round Rock etc.

    I’m a little shocked Samsung isn’t looking at North Dallas / Plano / McKinney. They already have presence / buildings around here and it has to be cheaper than Austin. And DFW has similar talent pool as Austin.
    [/QUOTE]

    I’d argue it has a better talent pool. The DFW area has a much bigger population and more workers that would be useful.

    [QUOTE=”Grimlakin, post: 28223, member: 215″]
    Property value in Dallas isn’t doing bad either. Has doubled and and continuing to grow since 2010.

    The reason they are putting the Plant in Austin is AMD is there, Apple is there, and Dell is there. So there is a good pool of talent to pull from. It’s like IT service companies being in DFW (Plano), or Telco companies being in the telcom corridor in Dallas as well. Some Oil and Gas but the majority of that is in the Houston metroplex area.

    Austin is the place in Texas with the focus on that area of industry. And yes their housing prices are becoming bonkers.
    [/QUOTE]

    As someone who’s been looking at the housing market (in DFW) since prior to 2010 and someone who’s owned a house since 2012, I can tell you it hasn’t quite doubled. It certainly has in the last 20 years, but not ten. Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.

  19. [QUOTE=”Dan_D, post: 28245, member: 6″]
    I’d argue it has a better talent pool. The DFW area has a much bigger population and more workers that would be useful.

    As someone who’s been looking at the housing market (in DFW) since prior to 2010 and someone who’s owned a house since 2012, I can tell you it hasn’t quite doubled. It certainly has in the last 20 years, but not ten. Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.
    [/QUOTE]

    I was only speaking to the home I own. Purchase for 122 valued at 260.

  20. [QUOTE=”Grimlakin, post: 28235, member: 215″]
    IMAGINE the cost savings… lets say samsung builds a big *** plant here in Austin Texas or really just outside of it. AMD contracts with them to build CPU’s and GPU’s.. THEN passes the savings on to manufacturers (AIB’s) to assemble in the US… and we get to buy cards 10% cheaper than the imported ones. (why not 25% Because part of that is increased cost of labor in the US.).
    [/QUOTE]
    Wishful thinking. US labor is more than 15% more costly, and that’s before you get to the logistics problem. When Apple thought to make the Mac Pro in Texas, yeah, they could get labor, but the thing that sunk it was in China, if you needed a part, it was made around the corner. In Texas, they had to come up with new supply lines for every little part to the factory, and it was ultimately screws that held up US production for a good bit.

    [URL unfurl=”true”]https://www.google.com/amp/s/appleinsider.com/articles/19/01/28/a-custom-screw-was-the-bottleneck-in-us-mac-pro-production/amp/[/URL]

  21. [QUOTE=”Brian_B, post: 28266, member: 96″]
    Wishful thinking. US labor is more than 15% more costly, and that’s before you get to the logistics problem. When Apple thought to make the Mac Pro in Texas, yeah, they could get labor, but the thing that sunk it was in China, if you needed a part, it was made around the corner. In Texas, they had to come up with new supply lines for every little part to the factory, and it was ultimately screws that held up US production for a good bit.

    [URL unfurl=”true”][URL]https://www.google.com/amp/s/appleinsider.com/articles/19/01/28/a-custom-screw-was-the-bottleneck-in-us-mac-pro-production/amp/[/URL][/URL]
    [/QUOTE]

    Point is if you want to resolve that you start at the screw and work your way up to the system. build out a complete supply line where you control the prices through wholly owned subsidiaries. Then you can report on the profits all the way to the top and if you need to take a L somewhere you pick a subsidiary to take the hit.

  22. Love the idea of more tech coming to Texas, but this means more economic refugees fleeing collectivism from California, only to try and replicate it when they arrive…

    We need to get better at deinstitutionalizing these folks on arrival, IMO.

    And a big part of choosing Austin is the tech [I]universities[/I] available. Samsung wouldn’t be coming if they couldn’t set up certification and degree tracks with every accredited institution within a few hundred miles in order to staff their venture!

  23. Went to Austin last year for a business conference.

    Damn place has construction cranes on nearly every block….

    I agree, great food, good bars, people were quite friendly. I found it interesting that

    almost no one was born and raised there.

    The place reminds me alot of Boulder Colorado and Burlington Vermont.

    Lots of young people with left leaning attitudes…..as demonstrated in the latest election.

    Good for Austin that it can attract such mega business.

  24. [QUOTE=”Dan_D, post: 28245, member: 6″]
    Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.
    [/QUOTE]

    You know what the difference is between Ft Worth and Houston? I would actually live in Ft Worth. You could not pay me to live in Houston. My mother lives down there and I hate it. She likes it because it’s “warmer” down there than Dallas. What she calls warm, I call oppressive heat and humidity. I can break into a sweaty mess just walking from the front door to the car. And never mind the yearly hurricane + flood scares.

    I suppose my opinion will change when I am 70+ and cold all the time.

  25. [QUOTE=”Burticus, post: 28302, member: 297″]
    You know what the difference is between Ft Worth and Houston? I would actually live in Ft Worth. You could not pay me to live in Houston. My mother lives down there and I hate it. She likes it because it’s “warmer” down there than Dallas. What she calls warm, I call oppressive heat and humidity. I can break into a sweaty mess just walking from the front door to the car. And never mind the yearly hurricane + flood scares.

    I suppose my opinion will change when I am 70+ and cold all the time.
    [/QUOTE]

    I’m with you. Oppressive heat and humidity is a good way to describe the climate down there. I used to live in Houston when I was a kid. I’ve also been back there over the years from time to time. Fortunately, never for long. I bought my 2001 Camaro SS down there about three years ago in the summer time. I sweat through my gun holster being outside for 15 minutes. It’s one reason I prefer full Kydex holsters now.

    I generally prefer Dallas to Ft. Worth, but I have done work in both cities. I just know Dallas really well and all my friends are on the Dallas side of the Metroplex. Given the right circumstances I’d live in Ft. Worth. Especially, since its a good deal cheaper than Dallas and less liberal.

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