South Korean tech giant Samsung Electronics Co Ltd plans to announce later on Tuesday that it has chosen a site in Taylor, Texas, for its new $17 billion chip plant in the United States, according to a source familiar with the matter.
The deal is scheduled to be announced at 5 p.m. CT (2300 GMT) on Tuesday at an event at the governor’s mansion in Texas, the source said, adding that it would include remarks from a Samsung executive and Governor Greg Abbott.
However, Samsung said in a statement that it had not made a final decision on the location. Abbott’s office did not respond to a request for comment.
A site in Texas’s Williamson County, near the city of Taylor, offered the best incentives package of the sites Samsung was considering, sources previously told Reuters. The world’s biggest memory chipmaker has said it is also considering sites in Arizona and New York.
The new plant is set to make advanced logic chips used to power mobile devices and autonomous vehicles, as the global auto industry faces a significant semiconductor shortage.
The factory would mark Samsung’s second chip factory in Texas, where it already manufactures chips at a plant in Austin.
Samsung is joining rivals TSMC and Intel in the race to expand chip contract manufacturing in the United States, where the sector is seen as an area of strategic competition with China. U.S. President Joe Biden’s administration has promised billions of dollars in federal funding to boost chip manufacturing and research to ensure it has an edge over China in advanced technologies and to address shortages for critical industries like autos.
Read all the Latest News, Breaking News and Coronavirus News here. Follow us on Facebook, Twitter and Telegram.