WSJ "Samsung Electronics Confirms Second US Foundry Plant in Taylor City"

Lee Jae-yong, Visiting the U.S., Reaps Results of $17 Billion Large-Scale Investment Decision

[Asia Economy Reporters Hyewon Kim, Suhwan Kim] Samsung Electronics appears to have finalized Taylor City, Texas, as the site for its second foundry (semiconductor contract manufacturing) plant in the United States, with an investment of about $17 billion (approximately 20 trillion KRW).

The Wall Street Journal (WSJ) reported on the 22nd (local time) that Samsung Electronics has decided to build a new foundry plant in Taylor, Texas, and plans to make an official announcement the following day. ▶See related articles on page 14 and the November 19th issue, page 3

WSJ cited sources saying that Texas Governor Greg Abbott is expected to officially announce this fact around 5 p.m. on the 23rd (8 a.m. on the 24th Korean time). Governor Abbott also hinted at a significant 'economic' announcement.

It was widely anticipated that Vice Chairman Lee Jae-yong’s recent business trip to the U.S. concluded negotiations with the American side regarding the plant site selection, and that an official announcement would be made soon. During his trip, Vice Chairman Lee reportedly met consecutively with key White House and congressional officials to review semiconductor supply chain issues and discuss federal government incentives for semiconductor companies.

Samsung Electronics’ strategy is to establish a second foundry production base in the U.S. and rapidly narrow the gap with TSMC, the market leader. Samsung built its first U.S. foundry plant in Austin, Texas, starting construction at the end of March 1996 and completing it in 1998, operating the plant for over 20 years. This marks the construction of Samsung’s second semiconductor plant in the U.S. after more than two decades. This large-scale investment decision was made abruptly just six months after Samsung announced a $17 billion investment plan during President Moon Jae-in’s visit to the U.S. in May, and three months after Vice Chairman Lee’s parole.

WSJ estimated that Samsung’s foundry plant in Taylor would create about 1,800 new jobs. The full-scale semiconductor mass production at this plant is expected by the end of 2024. However, a Samsung Electronics official told WSJ, "The final decision on the plant site has not yet been made."