Samsung set to invest $44 billion in Texas for advanced chips, AI, and, National Defense

In a strategic move to fortify its position in the global semiconductor market, Samsung is set to double its investment in Texas, pouring a staggering $44 billion into the development of advanced computer chips. This substantial investment is aimed at meeting the increasing demand for chips essential for smartphones, artificial intelligence, and national defense.

According to reports from the Wall Street Journal, Samsung plans to allocate $20 billion towards the construction of a new chip production plant and a facility dedicated to packaging, research, and development.

More specifically, it’s Samsung's base in Taylor, approximately 30 miles north of Austin, Texas that is set to receive the upgrades. The company was already developing a production hub in the region, which includes a $17 billion chip-making factory along with associated facilities.

Although the exact number has not been specified it is believed that Samsung will receive several billions of dollars from the US government in the form of subsidies in line with the US CHIPS Act.

This bipartisan legislation aims to revitalize domestic chip production, particularly in light of escalating tensions and heightened competition with China. The subsidy package earmarked for Samsung is poised to be one of the largest received by a single company.

Samsung officials are yet to respond to the reports although it’s believed that the company will officially announce the news on April 15th, the same day it releases its earnings report.

Samsung has already said investors should expect blockbuster growth following increased demand for chips.

Speculations circulating point to a 6.6 trillion won increase in operating profit, equivalent to approximately $4.89 billion. This would mark a staggering 931% increase compared to the corresponding quarter last year.