The factory may be able to manufacture advanced processors such as 3 nanometers, and it will be the third factory for Samsung in the world to use UV lithography technology in the production of chips.
If plans go ahead, construction on the plant could begin this year, with operations to begin as soon as possible in 2023.
A state-of-the-art Samsung manufacturing plant in the US could provide Samsung a foothold in securing new contracts from US customers amid ongoing trade tensions between the US and China.
The move also pushes Samsung into closer competition with TSMC, which makes chips for Apple, among other things, including the 5nm processors found inside Apple’s latest iPhones and Macs.
TSMC is also investing in a US-based plant, with a $ 12 billion site in Arizona, and is expected to begin manufacturing the chips by 2024.
In a statement submitted to Bloomberg, the South Korean company said: It has not yet made a decision on its plans for a new US facility.
Reported Agency Reuters earlier that Samsung plans to invest $ 116 billion over the next decade in chips.
The chips produced in Austin are currently believed to be limited to 14nm manufacturing technology, andSamsung hopes to start introducing chips based on 3nm manufacturing technology in 2022.
While the strength of the South Korean giant has traditionally been in memory chips, Bloomberg notes that the market for logical devices such as smartphones and computer processors is more profitable.
Reportedly, Samsung’s factory plans are still in their initial stages, but some initial steps have been taken.
Reported newspaper Nikkei Asian Review in December that Samsung acquired a 440,000-square-meter plot of land in Austin, which it has had an industrial presence since the 1990s.
Last year, city officials began reviewing the company’s request to re-divide the land for industrial use.
The completion of the deal may depend on Samsung negotiating tax benefits and subsidies with the Biden administration, although Bloomberg has stated that it may go ahead without it.
Samsung manufactures the chips for Qualcomm and Nvidia, and it is said that it is about to sign a new deal with Intel. newspaper The Korea Times reported that Samsung could produce 15,000 graphics chips for Intel starting in the second half of this year at Samsung’s plant in Austin.
Intel CEO Pat Gelsinger said that outsourcing could be part of the company’s future, and although the company plans to continue producing the majority of its chips internally, it may outsource certain technologies and products in 2023.
Bloomberg notes that the South Korean giant is taking advantage of companies such as: Microsoft, Amazon and Google, which want to design its chips and use external sources for manufacturing, such as: Samsung and TSMC.
In addition to making chips for others, Samsung also produces its Exynos-branded processors for use in its smartphones.
Samsung still faces a major challenge competing with TSMC, which plans to invest $ 28 billion this year alone.
In contrast, Samsung invested $ 26 billion last year in semiconductor, and Bloomberg notes that this was mainly to support its memory business.