Samsung Almost Chooses Austin for New Semiconductor Fab
While an official announcement has not been made by Samsung Electronics (005930.KS) concerning the location of the company’s next semi fab, it seems they have already made an internal decision to build the new line at their existing complex in Austin, Texas. South Korean trade press has reported that the company will begin construction of the new fab in 3Q of this year with a goal of mass production in 2024. The official announcement is expected to be made around the time of the US/South Korean Summit, which is to take place later this month (tentatively May 21). Samsung has been buying additional land near its existing fab since 2018, has accumulated a bit over 300 acres to date, and requested rezoning for the land.
The new line is expected to be a 5nm EUV process line that will cost ~$17.6b US and will be in addition to the S2 fab that Samsung has in production in Austin, which has a capacity of 92,000 wpm and is primarily working at 14nm. Samsung has already sent staff to Austin to supervise the construction of the new fab, according to Korean press, which leaves Arizona, and upstate New York, the two other potential locations for the fab, out of luck. Arizona had been offering a $9,000 tax credit for every job created by the fab and New York was offering $900m in funding to develop the site if Samsung were to choose that location. The original Austin plan requested by Samsung was for $718.m from Travis County and $87.2m from the city of Austin in tax breaks over 20 years, with construction to begin this quarter and mass production in 3Q 2023. If the Korean press is correct, there would only be a small delay from the original plan, although the financials might have changed.
The new line is expected to be a 5nm EUV process line that will cost ~$17.6b US and will be in addition to the S2 fab that Samsung has in production in Austin, which has a capacity of 92,000 wpm and is primarily working at 14nm. Samsung has already sent staff to Austin to supervise the construction of the new fab, according to Korean press, which leaves Arizona, and upstate New York, the two other potential locations for the fab, out of luck. Arizona had been offering a $9,000 tax credit for every job created by the fab and New York was offering $900m in funding to develop the site if Samsung were to choose that location. The original Austin plan requested by Samsung was for $718.m from Travis County and $87.2m from the city of Austin in tax breaks over 20 years, with construction to begin this quarter and mass production in 3Q 2023. If the Korean press is correct, there would only be a small delay from the original plan, although the financials might have changed.
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