Samsung to expand in Central Texas with $6.4B federal grant

Samsung expanding in Central Texas

A $6.4 billion federal grant will give Samsung the opportunity to continue to grow in Taylor and Austin.

TAYLOR, Texas - Samsung officials promised their deep roots in Texas will go even deeper in Taylor.

"Our plan is not just about investing in chips, but this is about investment in our community. We are here to stay," said Samsung President and CEO Dr. Kye Hyun Kyung.

Samsung and the Department of Commerce signed a deal that will provide the company with access to a federal grant program totaling $6.4 billion.

"This is more than just, you know, building a factory to build chips. It's so much more than that. This investment will quite literally transform Central Texas. It's going to support a comprehensive, diverse, leading edge manufacturing ecosystem here in Central Texas," said Gina Raimondo, with the U.S. Department of Commerce.

At the new Taylor chip plant, the money will help complete two fabrication units, build an R&D site, as well as construct an advanced packaging facility.

Samsung contributed $26.8B to Austin economy

Samsung released its annual economic impact report for the Austin area, and the numbers for 2023 are drastically higher than all the years prior. This comes as the tech giant's chip factory in Taylor gets ready to open its doors.

"We knew this was coming. We didn't know this was coming at this magnitude. What we're seeing today is just an amazing collaboration of a lot of people working really hard to help us be successful. So, today's an exciting day," said Williamson Co. Judge Bill Gravell.

The grant will also be used at Samsung’s location in Austin. That site, which has been operating for nearly three decades, will go through a major upgrade.

"Austin and Central Texas are going to be kind of a focal point in the world. It already is. But this actually puts it all on steroids in a lot of ways," said Austin Mayor Kirk Watson.

MORE STORIES:

The Samsung grant was made possible by the CHIPS Act. The legislation was filed in 2020 by Texas Senator John Cornyn, who couldn’t attend the ceremony, and was pushed through the house by congressman Michael McCaul.

"The reason I introduced it was to pull the supply chain out of Taiwan, which controls 90% of the advanced semiconductor manufacturing, and bring it to the United States, and that is exactly what we are doing," said McCaul.

The deal is expected to create 17,000 construction jobs, almost 5,000 manufacturing jobs and several thousand spinoff jobs. The infusion of extra money will not only accelerate the manufacturing transformation, but also the transformation of this part of Williamson County.

Samsung Taylor plant operational this year

The Samsung plant being built in Taylor will be operational this year. But, company officials said they cannot say when mass production of new computer chips will begin.

FOX 7 Austin spoke to local leaders about what they are doing to protect what made Williamson County attractive.

"We know it's going to change dramatically with all the growth and development, but we've worked hard on planning for the future to incorporate elements in our growth pattern that are going to preserve those things that we love best about this community," said Taylor Mayor Brandt Rydell.

The first Taylor fab could be operational by 2026 and the second online a year later.

"And if this was not going to be Samsung, which is going to be a benefit to the community, it most likely would end up being 1,200 acres of rooftops. And I look at what that would do for our community. I look like what that would do to traffic. And I mean, and this is this, this is better," said Russ Boles, Williamson Co Commissioner Pct 4.

Samsung’s total investment is now expected to exceed $40 billion.