Samsung announced its highest ever investment in the US to compete with Apple

The White House assured that the new facility will help “protect our supply chains and revitalize our manufacturing base.”

Chip shortage problems around the world continue to cause movements among companies in this industry. Samsung announced that it will build its new advanced chip factory in Texas (USA) in which it will invest 17,000 million dollars. It is the largest investment ever made by the South Korean giant in this country.

The plant, which is expected to create 2,000 jobs, will be located in the town of Taylor, about 50 kilometers from the city of Austin, where Samsung already has another semiconductor plant. Construction will begin early next year.

The Vice Chairman of the Board of Directors and CEO of Samsung Electronics, Kinam Kim |, he assured that “with a greater manufacturing capacity we will be able to better meet the needs of our customers and contribute to the stability of the semiconductor supply chain at a global level”. The plant is expected to be operational in the second half of 2024, so for now it will not alleviate the chip crisis gripping the automotive sector, which has forced a reduction in the number of vehicles manufactured, and the technology sector.

Companies such as Apple, Sony, Nintendo or Microsoft have announced problems to supply the new iPhone 13 and its latest generation consoles. Samsung said in a statement that the new factory will produce advanced processors for applications in areas such as mobility, 5G, high-performance computing and artificial intelligence.

The officials of the White House said the new facility will help “protect our supply chains, revitalize our manufacturing base and create quality jobs.” The Efe agency recalled how the Administration of US President Joe Biden has established as a national priority the increase of local semiconductor production to reduce dependence on chips from abroad and avoid a repeat of this year’s supply crisis.

The US Senate recently approved a plan to allocate $ 52 billion in subsidies for the construction of new chip production plants. And it is that according to reveals the Association of the Semiconductor Sector, which groups together the producers of processors in the country, the global share of US chip production has dropped from 37% in 1990 to 12% today.

A statement from the Republican Governor’s Office of Texas, Greg Abbott, indicated that Samsung would obtain a grant of 27 million dollars to create jobs in the state. Samsung, with 20,000 employees in the US, is one of the largest chip manufacturers in the world along with the Taiwanese TSCM. The company said that with this announcement it raises its total investment in the US to 47,000 million dollars. TSCM also announced a $ 100 billion investment in Arizona earlier this year and the US GlobalFoundries also revealed that it will increase its investment in upstate New York.

Apple has problems in the iPhone supply chain.

Apple’s alliance with TSMC

In the midst of this global chip crisis, Apple is forging a closer partnership with TSMC hoping to reduce its dependence on Qualcomm and with the aim of the Taiwanese giant making the apple company’s 5G modems for iPhones starting in 2023, according to Nikkei Asia.

Apple has been using chips Qualcomm for the past few years, but in December 2020 Johny Srouji, Apple’s senior vice president of hardware technologies, said they were working on their first 5G modem. The aforementioned media assures that four sources familiar with the matter assure that Apple plans to adopt TSMC’s 4-nanometer chip production technology to mass-produce its first 5G modem and that the iPhone manufacturer is developing its own radio frequency and wave components. millimeter to complete the modem. Apple would also be working on its own power management chips specifically for the modem. In the latest series of iPhones, all of these components are provided by Qualcomm.

Qualcomm is one of the largest cell phone chip manufacturers.

Qualcomm is one of the largest cell phone chip manufacturers.

Nikkei Asia explains that this strategy will not only allow Apple to save money on the fees it currently pays to Qualcomm, but it will help it have more control over the integration of hardware in its equipment and increase the efficiency of the chips. This control can be translated, in fact, into improvements both in the energy efficiency of the component and in the implementation of new technologies that improve the connectivity of the device.

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