Texas leaders and White house It is celebrating news that South Korean technology giant Samsung will build a $17 billion semiconductor factory outside of Austin, a move that may help fill the shortage of computer chips used in mobile phones and cars.
“Texas has the largest foreign direct investment in history,” Texas Governor and Republican Greg Abbott wrote on Twitter on Wednesday.
Samsung, the world’s largest semiconductor manufacturer, said on Wednesday that it plans to start construction next year and start operations in 2024. Abbott said the move will create thousands of jobs in his state.
The company said that global chip shortages make it particularly difficult for the supply chain to keep up with the ambitions of electric vehicles.
This issue has attracted the attention of President Biden. He is pushing to increase domestic production of semiconductors and batteries without relying on places such as China or Taiwan, which Beijing claims are separate territories.
Earlier this year, he touted the establishment of a new battery manufacturing partnership between Ford Motor Company and South Korean company SK Innovation, which will generate electricity from a factory in Georgia as part of the government’s $174 billion electric vehicle plan .
Brian Deese Chairman White houseThe National Economic Commission stated that the Samsung factory will greatly help “protect our supply chain, revitalize our manufacturing base, and create good job opportunities in the country.”
“The Biden-Harris administration has been working with Congress, our allies and partners, and the private sector around the clock to increase semiconductor manufacturing capabilities and to ensure that we no longer face shortages,” Mr. Diess said. “Today’s announcement is the result of the continuous work of the government, including contacts with Samsung and the president’s meeting with South Korean President Moon Jae-in in May. The two leaders announced that they would promote complementary investments in semiconductors.”