Texas executives, The White House welcomes plans for Samsung’s semiconductor chip factory

Texas executives and the White House are celebrating the news that South Korean technology giant Samsung will build a $ 17 billion semiconductor facility outside Austin, a move that could help fill a shortage of computer chips used in phones and cars.

“The largest foreign direct investment in the state of Texas EVER,” tweeted Texas Gov. Greg Abbott, a Republican, Wednesday.

Samsung, the world’s largest semiconductor manufacturer, said on Wednesday that it plans to start construction next year and begin operations in 2024. Abbott said the move would create thousands of jobs in his state.

Companies say a global chip shortage is making it difficult for supply chains to keep up, especially with electric car ambitions.

The issue reached President Biden’s attention. He pushes to increase domestic production of semiconductors and batteries without relying on places like China or Taiwan, which Beijing claims as a breakaway area.

Earlier this year, he announced a new battery manufacturing partnership between Ford Motor Co. and SK Innovation, a South Korean company that will generate power from a plant in Georgia as part of the administration’s $ 174 billion electric car initiative.

Brian Deese, chairman of the White House National Economic Council, said the Samsung plant will go a long way toward “protecting our supply chains, revitalizing our production base and creating great jobs right here at home.”

“The Biden-Harris Administration has worked around the clock with Congress, our allies and partners, and the private sector to generate additional semiconductor production capacity and ensure that we never face shortages again,” he said. Deese. “Today’s announcement is the result of continued work by the administration, including engagement with Samsung and the President’s meeting with President Moon in the Republic of Korea in May, where the two leaders announced they would facilitate mutual and complementary investments in semiconductors.”

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