From the cover
Samsung ups investment to $45B after federal subsidy
BY GRACE DICKENS & HALEY MCLEOD
Industry leaders Texas and California have the two largest semiconductor industries in the nation, according to the Semiconductor Industry Association. For 2022:
Some context
Two-minute impact
Samsung rst arrived in Austin in 1996 with the Samsung Austin Semiconductor, a 600-acre campus in North Austin. Samsung’s initial invest- ment in Williamson County came in 2021 when the tech giant announced it would build a $17 billion fabrication plant in Taylor, according to previous Community Impact reporting. The company’s latest Economic Impact Report estimated both facilities contributed $26.8 billion to the local economy in 2023. The federal funding—from the CHIPS and Science Act signed into e ect in 2022—will help expand Samsung’s footprint in Taylor to include an advanced packaging facility, a research and development center, and a second fabrication plant. The project will also invest funds into growing the Austin campus. The federal legislation was created to strengthen manufacturing and supply chains in America, with the goal to produce 20% of the world’s leading-edge logic chips by 2030, according to a news release.
Samsung Electronics signed a preliminary agreement with the U.S. Department of Commerce on April 15, receiving $6.4 billion in government subsidies in exchange for an estimated $45 billion total investment within the region surrounding the Taylor manufacturing plant and existing North Austin facility. The proposed investment will support over 20,000 jobs, with nearly 4,500 manufacturing jobs and 17,000 construction jobs created over the next ve years, according to a news release. “This announcement dedicates $40 million in workforce funding to developing future generations of industry-leading technologists, technicians and engineers,” said Lael Brainard, White House national economic advisor. U.S. Secretary of Commerce Gina Raimondo remarked that the jobs created would be “well-paying, family-supporting jobs.”
Texas
California
Number of workers Amount in exports
43,800
63,300
$22 billion
$11.3 billion
SOURCE: SEMICONDUCTOR INDUSTRY ASSOCIATION COMMUNITY IMPACT
“Williamson County has become a world leader in developing an ecosystem for the
semiconductor industry. Its impact will be felt for generations to come.” BILL GRAVELL, WILLIAMSON COUNTY JUDGE
Investing in tech
Put in perspective
in government subsidies awarded
to Samsung $6.4B
semiconductor industry, including a master’s degree program o ering a major in semiconductor science and engineering, and a new partnership with ACC and the Texas Institute for Electronics to create a semiconductor training center. Over a quarter of existing positions in Texas require a graduate degree and one-third of the work- force is expected to retire within the next decade, according to a 2023 report from the Semiconductor Industry Association.
To support the largest semiconductor industry in the U.S., the recent federal and Samsung invest- ments will also help build a local workforce with educational programs. “It will build on Samsung’s proven record of workforce engagement in Texas, including robust partnerships with local education institutions like Austin Community College,” Brainard said. Similarly, The University of Texas announced in March and April programs to support the growing
total Samsung investment in
Taylor and Central Texas $45B
jobs created in construction and manufacturing over ve years 20K
facilities to be added in Taylor under new investment
3
SOURCES: SAMSUNG ELECTRONICS, U.S. DEPARTMENT OF COMMERCE, WILLIAMSON COUNTY COMMUNITY IMPACT
Looking forward
What’s next?
CHIPS Act signed into law
2022
Construction on Production Facility 1 begins July: Production Facility 1 to become operational Production Facility 1 to be available for full-scale production Production Facility 2 with research center and packaging facility operational
“All of this, of course, is more important than where we started because all arti cial intelligence is run on and trained on by chips,” Raimondo said. Raimondo highlighted the impressive scale of the initial fabrication facility under construction in Taylor, which spans an area equivalent to 11 full-size football elds. With the addition of CHIPS funding, the Taylor site will have two facilities of this size.
The paired investments from the U.S. Department of Commerce and Samsung indicate plans to build a cluster of semiconductor factories in Central Texas, facilities which will provide vital components for the ever-evolving technology industry. Over two dozen suppliers have already committed to coming to the region to support the cluster, according to White House senior administration o cials.
2024
2026
2027
2028
Austin Samsung facility expansion to begin
SOURCE: U.S. WHITE HOUSE COMMUNITY IMPACT
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