This whole supply chain issue will be addressed by Samsung’s planned $17 billion chip plant in Texas

by - – Samsung is said to be working on circuits using a 3 nanometer manufacturing process. For the sum of $17 billion, Samsung is setting up shop in Texas, where it plans to construct a giant chip plant.

An Austin-based semiconductor manufacturing factory is scheduled to open in Taylor in the second half of 2024 with an objective of stabilizing supply. Not only does Samsung employ its own processors in its own products (such as the Exynos SoC in Galaxy phones), but it also supplies others with them.

According to recent estimates, Samsung may be able to make chips with a 3 nanometer node at the new factory, which is a considerable leap from the 14-nanometer nodes purportedly being made at its smaller unit in Austin. According to the rumor mill, Intel is in negotiations with Samsung to have some of its chips manufactured by Samsung.

As a result of the persistent chip scarcity, Korean tech giant Samsung Electronics has become a more profitable processor manufacturer than it was before. The reason for this is that Samsung’s competitors have already announced plans to expand their chipmaking operations, with TSMC and Sony opening a $7 billion chip factory in Japan at the end of 2024, when TSMC–the world’s largest semiconductor manufacturer and Apple’s supplier–plans to open its own $12 billion plant in Arizona to manufacture 5-nanometer technology. According to Reuters, TSMC plans to establish as many as six facilities in Arizona over the next ten to fifteen years. In March, Intel said that it will invest $20 billion to establish two chip fabs in the same state as its opponent, a decision that has now been confirmed.

The Biden administration’s drive to lure semiconductor production to the United States is seen as a success by Samsung’s decision to locate its facilities in Texas. Chips Act, a $52 billion measure to boost domestic chip manufacture, is being vigorously pursued by the White House.

A statement from Kinam Kim, vice chairman and CEO of Samsung Electronics Device Solutions, stated that “in addition to our Texas partners, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the United States.” Additionally, we are grateful to the administration and Congress for their bipartisan cooperation in quickly enacting government incentives for domestic chip manufacture and innovation.

This will be Samsung’s greatest investment in the United States when the 1,200-acre complex is completed and 1,800 people are employed.

In the wake of the covid-19 outbreak, chip supply shortages have decimated the computer sector. Sony’s PS5 is almost hard to get hold of, automobile costs are sky high, and some items in other categories are always out of stock for customers.

Although Intel CEO Pat Gelsinger has predicted that the chip scarcity would continue beyond 2023, it is not apparent when the problem will be resolved. When asked whether supplies would be “likely constrained,” AMD CEO Lisa Su said that she believes they will remain till mid-2020. Some consolation comes from knowing that steps are in place to avoid this nightmarish scenario from occurring again, thanks to the proliferation of chip fabs in the next several years.