Samsung to Build $17B Plant in Texas Aimed at Easing Semiconductor Chip Shortage

Taylor, TX — Technology giant Samsung Electronics announced last week it will build a new multi-billion dollar semiconductor microchip manufacturing facility in Texas.

The news comes amid widespread semiconductor microchip shortages worldwide, reportedly exacerbated by overseas manufacturers who “pivoted toward consumer electronics” in the midst of the COVID-19 pandemic.




 

The chip shortage has resulted in stalled production, a reduction of inventory and an increase of prices across all automotive sectors, including trucking.

In August, Transportation Nation Network (TNN) reported the layoffs of hundreds of employees at the Chillicothe Kenworth plant in Ohio.

According to The Scioto Post, “over a thousand” manufactured Kenworth trucks — “some with weeds growing through them” — are currently sitting idle at the Ross County Fairgrounds and at the plant.

The trucks are not deemed road-worthy, as they lack the semiconductor microchip.




 

Additionally, many truckers are facing serious challenges repairing DEF sensors due to the ongoing shortage and supply chain chaos.

In October, U.S. Senator Marsha Blackburn (R-TN) wrote to Environmental Protection Agency (EPA) Administrator Michael Regan urging more action on the issue.

“I write to express concern regarding the unavailability of replacement DEF sensors for American truckers,” Blackburn wrote. “As you know, the global microchip shortage is causing extreme hardship for trucking companies. I urge the EPA to redouble its efforts to facilitate and approve a software concern solution to quell this dire situation. Time is of the essence.”




 

As for Samsung, the company said the estimated $17 billion investment will “help boost production of advanced logic semiconductor solutions.”

Groundbreaking will be in the first half of 2022, the company stated, with the target of having the facility — which will span more than five million square meters and serve as a key location for Samsung’s global semiconductor manufacturing capacity — operational in the second half of 2024.


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The company also has an existing manufacturing site in Austin — approximately 40 miles southwest of Taylor — which will allow the two locations to “share the necessary infrastructure and resources,” according to Samsung.

The new facility is anticipated to add 2,000 high-tech jobs to the area once its completed.

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