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Samsung Picks Texas Site for $17 Billion Advanced US Chip Plant (yahoo.com) 75

Samsung Electronics has decided to build an advanced U.S. chip plant in Texas, a win for the Biden administration as it prioritizes supply chain security and greater semiconductor capacity on American soil. From a report: South Korea's largest company has decided on the city of Taylor, roughly 30 miles (48 kilometers) from its giant manufacturing hub in Austin, a person familiar with the matter said. Samsung and Texas officials will announce the decision Tuesday afternoon, according to people familiar with the matter, asking not to be identified because the news hasn't been made public. A Samsung representative said it hadn't made a final decision and declined further comment. Samsung is hoping to win more American clients and narrow the gap with Taiwan Semiconductor Manufacturing Co. Its decision, which came months after de facto leader Jay Y. Lee was released from prison on parole, follows plans by TSMC and Intel Corp. to spend billions on cutting-edge facilities globally. The industry triumvirate is racing to meet a post-pandemic surge in demand that has stretched global capacity to the max, while anticipating more and more connected devices from cars to homes will require chips in future. The plant will cost Samsung $17 billion to set up, according to WSJ.
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Samsung Picks Texas Site for $17 Billion Advanced US Chip Plant

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  • by kschendel ( 644489 ) on Tuesday November 23, 2021 @12:48PM (#62013831) Homepage

    I hope that price includes on-site power generation, because otherwise they are stupid to pick Texas IMO - especially with the bitcoin miners flocking there too.

    (Or, maybe they plan on buying enough Texas legislators to bring some sanity to the state power regulations!)

    • by timeOday ( 582209 ) on Tuesday November 23, 2021 @12:58PM (#62013865)
      I am actually glad to see a lot of power-hungry industry settling in Texas. It has vast wind and solar resources. And, the place is ugly. Whatever the Texas power grid is like today, it is going to be quite a bit different and much more modern than most of the US power grid after all this rapid growth.

      Of course, when you're investing $17,000,000,000 in a facility you want it to actually work, so there will be a pretty strong motive to just pile on more natural gas generation.

      • The Texas power grind problem is partly due to it being independent of all other states. The rest of the continental states all interconnect.

      • by kschendel ( 644489 ) on Tuesday November 23, 2021 @02:05PM (#62014129) Homepage

        The technical issues with the Texas power grid are fixable, given enough time and money.

        The ideological delusions that led to that grid being the dangerously under-protected thing that it is, will take a bit longer to fix.

        We'll see. I certainly don't wish Samsung ill, I just think that one winter grid crash will soak up all the incentives they collected to locate there, and the second one will put them in the hole.

        • OTOH since the plant is being built by Samsung we can safely assume that it will at some point burst into flames. Good thing fabs have big connections to water...

        • A plant that large has a budget for on-site emergency generators. Texas' flaky powergrid is well-known and will be factored in when the plant is built.

        • by UnknowingFool ( 672806 ) on Tuesday November 23, 2021 @03:41PM (#62014485)
          Samsung’s existing fab in Texas was affected by the February storm so I would think that Samsung would plan for that with this new fab.
      • In my opinion the really ugly parts are the petrochemical plants and some parts of the larger cities. And some of the people.

        It's a big place and there are still lots of beautiful parts. Last I checked anyway - it's been a few years, but I'm from somewhere in the Houston area - Born on the Bayou. Some stretches of the bayous were kind of ugly too.

        And we should have taken heed : Texas suffers from Soviet-style electricity distribution system [chron.com]. That article was from 2013. I used to think brief power outage

    • You are likely correct on the power backup, but the legislators they're buying will just order ERCOT to cut power to homeowners and others first. Personally I think it's foolish as well, they might be saving money by building in a 2nd world state, but one power outage killing a fab will eat that along with the higher insurance costs.

      A former employer picked a completely different state that had good access, cheap power, ready labor, and so on, plus they are on the proper side of the mountain range. That
    • I hope that price includes on-site power generation, because otherwise they are stupid to pick Texas IMO

      Having lived in tornado alley... um, I mean "the wind corridor", the existence of backup generators at the facility is nearly certain. Once the backup generators are pointed out they can be seen every where. They are often placed off to the side of the parking lot, presumably so they can reach it easily with heavy equipment in case it needs repair or replacement. In most of the US Midwest these generators run off of municipal natural gas. Some places will run the generators on LPG because that's the che

    • > they are stupid to pick Texas IMO - especially with the bitcoin miners flocking there too.

      I'm sure Samsung never considered the power grid in their selection process. Give them a call.

    • We're targeted. Samsung can easily make a deal where they're guaranteed power even at the cost of everyone else in Texas being without it. All they have to do is grease the right palms. Texas has reached and absurd level of corruption thanks to their voters being way too preoccupied with a handful of social issues, making it possible for kitchen table economics to go right out the window.
    • That was a once in a hundred years event. Seems like a reasonable risk.
  • This is gonna create a good amount of jobs for the good people of Austin metropolitan area.
  • Considering that texas ruined tens of millions of dollars worth of chips in their other fab

  • it is a big news, looking forward to it
  • The Tesla Orbit. (Score:4, Interesting)

    by jellomizer ( 103300 ) on Tuesday November 23, 2021 @01:36PM (#62014007)

    Tesla has Chosen Samsung to build its next generation Driving Computer, Also Tesla had chosen Samsung to provide its cameras.
    Much like how Detroit has a lot of companies that are not the actual Auto makers, but have these Automakers as their primary customer. I expect Tesla is attracting a lot of companies to the Austin TX area.

    While I plan for my next car to be a Tesla, The Tesla company really is in a bubble, and I am in general afraid, if Tesla's bubble would pop, Austin TX will get a big hit. However it is a good sized city, it won't be as bad as some other areas, but Tesla Goes a bunch of other companies that are building there now will move out shortly after.

    • I regret not buying the company, but I don't regret not having bought the car. It's Apple all over again for me. I don't want an iPhone, with or without wheels. I'm holding out for a more "open" EV. IIRC, Dodge just announced a major re-tooling to EVs but I haven't heard much good about their quality in other areas. After being the butt of jokes many years, Ford might be good so I'm watching to see what they'll be offering. For now though, Tesla is just ruling with the super-charging network and such.

  • But add in Tesla and SpaceX. These high skill jobs are going to affect the political landscape. A lot of current Texan's won't be happy.

  • by DesScorp ( 410532 ) on Tuesday November 23, 2021 @01:52PM (#62014061) Journal

    Why would this be a win for the Biden Administration? Samsung was going to build in the US regardless, Biden will be out of office by the time production really gets rolling, and Samsung picked a state that's antagonistic to Biden. A win for Texas? Certainly. For Biden himself? That's really stretching it, and taking credit for something he really hadn't anything to do with.

    • Redefinition of facts. That was my exact same question when I read the summary. None of this falls on Brandon.
    • I literally hundreds of billions of dollars that he and the Democrats just pushed through via the infrastructure bill were probably a deciding factor in putting the factory in the United States. There's no reason why that factory couldn't have been in Mexico, Brazil, or even Canada. The United States is missed out on a lot because we've let our infrastructure collapse thanks to gridlock and obstructionism from a certain party.
    • Why would this be a win for the Biden Administration? Samsung was going to build in the US regardless

      Perception and marketing. Presidents get both wins and blames for things completely irrelevant to them all the time. This one is a win, Biden is president when it was announced, it was announced that it includes jobs, it was announced that it includes investment. Yay look at our president and how *he* is making America grea... err no malarkey or whatever the **** today's catchphrase is.

    • by Osgeld ( 1900440 )

      cause when samsung takes all the money and fucks off like what foxconn did the next guy is the looser, not him ... its really not that hard

    • by khchung ( 462899 )

      Why would this be a win for the Biden Administration?

      You must be new to politics. Practically every politician will take credit for anything good happening in his term, and blame someone else for anything bad happening in his term. The same applies to CEO and most managers, too.

      It would be a wonder if Biden didn't claim credit, or give Trump the credit, for anything good that has happened after his inauguration.

    • No one outside of slashdot knows that. It's a great talking point. "I brought Samsung to the US."

  • Most likely they chose the location because it is located in the Eastern District of Texas - Patent troll heaven.
  • Good thing AOC doesn't represent this district. She would do everything she could to kill the deal.

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