AustinReal Estate & Development

Samsung Supersizes Texas Plant to Rival TSMC's Throne

Samsung Supersizes Texas Plant to Rival TSMC's ThroneSource: Eirik Solheim from Oslo, Norway, CC BY-SA 2.0, via Wikimedia Commons
Matt Mitchell
Published on November 23, 2023

In a bid to become a titan in the AI chip industry, Samsung Electronics is supersizing its footprint in Taylor, Texas, confirming a colossal 2.7 million square foot addition to its upcoming plant—a clear challenge to rivals like the dominant TSMC according to the Digitimes. The expansion, poised to cater to flourishing demand, aligns with a grand vision unveiled by Kye Hyun Kyung, the big boss of Samsung's semiconductor sector, who's been vocal about overtaking TSMC within five years.

The stakes are high, and the diggers are already digging at the Taylor site where Samsung's grand plans are set to materialize, with construction due to be wrapped up next year and chips expected to be rolling off the line by the end of 2024, amidst worries from local residents about the looming challenge of increased traffic and the strain on water resources as told by KVUE.

This Texas-sized investment, initially tagged at $17 billion, has experienced a financial swell to $25 billion—thanks in part to rising raw material costs—and has set the town of Taylor on a growth trajectory that Mayor Brandt Rydell believes could rank it as one of the fastest-growing cities in the nation during this decade, declaring to KVUE, "having an economic project out here on a scale that few have seen in the world."

Local businesses near the site, such as Ed's Place, have their salt shakers ready to season up an expected uptick in burger sales; in contrast, some residents, like John O'Neil, express mixed feelings about the heavy development that could put an extra burden on roads and thin the city's water supply, a concern Rydell addressed by confirming Samsung would be sourcing water independently for their industrial operations and not siphoning off from municipal reserves. Signs are pointing to rising property taxes to meet these growing pains—the city is, however, staying on the offensive with a comprehensive plan already in place to combat and accommodate such growth.

Feeding into the narrative of a significant economic upswing not only for Taylor but for the entire semiconductor industry, the expanded Samsung facility is already slated to crank out 4-nanometer tech chips for AI gurus Groq and Canadian startup sensation Tenstorrent, setting the stage for the birth of a new tech hub right in the heartland of Texas BBQ country, a stone's throw from the state capital's own tech scene in Austin.

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