Samsung Weighs Massive US Ambitions As CHIPS Bill Gathers Momentum

  • Samsung Electronics Co, Ltd SSNLF floated the prospect of investing ~$200 billion in 11 new chipmaking plants in Texas over the next two decades, the Wall Street Journal reports citing Texas Comptroller filings.
  • Samsung could invest ~$170 billion toward nine new chip manufacturing facilities in Taylor and roughly $25 billion in Austin.
  • The filings did not indicate specific plans. 
  • The spending proposals reflect the company’s long-term planning process to evaluate the viability of further U.S. expansion.
  • The update coincided with the U.S. weighing over $50 billion in subsidies to boost American-based chip production and research. 
  • U.S.’s dillydallying over the enactment of the CHIPS Bill prompted some semiconductor giants to stall tens of billions of dollars in potential factory projects.
  • In 2021, Samsung shared plans to build its third Texas-based plant, spending $17 billion.
  • In May, Samsung shared plans to invest $356 billion in the next five years to accelerate growth in semiconductors, biopharma, and other next-generation tech.
  • Recently, leading contract chipmaker and Apple Inc AAPL supplier Taiwan Semiconductor Manufacturing Company Ltd TSM toppled Samsung to become the leading chipmaking foundry.
  • Price Action: TSM shares traded higher by 0.25% at $86.73 on the last check Thursday.

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