Samsung is currently building a new processor fab in Taylor, Texas, with a projected price tag of $25 billion. The company now plans to increase its investment in Taylor, constructing another new chip plant and opening a research and development facility and an advanced packaging factory. This is expected to boost the total value of Samsung's investment in Taylor to about $44 billion. The company is also set to receive more than $6 billion in federal funding for the project under the 2022 CHIPS and Science Act.
Key takeaways:
- Samsung Electronics Co. Ltd. has reported a 931% surge in operating profit in the first quarter, largely due to its chip business.
- The company is planning a major expansion of its chip production infrastructure, including a second processor fab in Taylor, Texas, and several other semiconductor facilities.
- The price of flash and DRAM chips, of which Samsung is the world's largest maker, has started climbing, ending a demand slump that negatively impacted earnings last year.
- Samsung is expected to receive more than $6 billion in federal funding for its new chip plant project under the 2022 CHIPS and Science Act.