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The earlier rumors that Samsung may construct a manufacturing facility in the United States have confirmed true. The firm is investigating potential websites in New York, Texas, and Arizona, with plans to construct a $17 billion facility.

Anandtech stories that the foundry could be on-line by This autumn 2023. That’s a fast ramp, if true. For comparability, Intel’s Fab 42 in Arizona was beneath building from 2011 – early 2014, earlier than Intel paused the undertaking. Development restarted in February 2017, and the facility was declared operational in October 2020. It’s frequent for a brand new foundry to ramp up manufacturing steadily, so Samsung’s declaration that it desires to have the fab operational by late 2023 doesn’t imply the facility could be producing at something like most capability.

It’s just a little unclear if the facility is assured to be in Austin or not. AT’s article opens by saying Samsung has filed paperwork in three states in search of to construct a fab, however then refers to the Austin web site repeatedly as a accomplished or nearly-done deal.

Samsung's new HQ is quite angular on the outside, which betrays its curvy interior courtyard and towers

Samsung’s headquarters.

Regardless of the place it’s, the new facility would produce 1800 long-term jobs in semiconductor manufacturing. Samsung hasn’t named the course of node it could deploy, however we are able to make some guesses about it. During its Q3 quarterly earnings report, Samsung introduced it had begun its first shipments of cellular 5nm chips. It additionally famous it had elevated HPC (excessive efficiency computing) chip manufacturing. Samsung’s largest identified clients in that area are IBM and Nvidia. IBM’s Power10 gained’t ramp till later this 12 months, and Nvidia has been stuffing each GPU it could possibly manufacture into the OEM and retail channels.

The $17B funding is separate from Samsung’s S2 facility in Austin, which can proceed to manufacture 14/11 nm {hardware} for the foreseeable future. All shopper foundries, together with TSMC and Samsung, keep an extended tail of producing functionality on older nodes to assist clients who don’t have any want to transfer to newer course of applied sciences, or solely undertake “new” nodes slowly, when prices are low sufficient and enhancements excessive sufficient to justify the effort. Not all kinds of semiconductors profit from node shrinks, and even people who do profit could solely acquire 10-20 p.c improved efficiency or energy consumption.

Samsung has beforehand claimed it needed to carry 3nm to market by 2022, so it’s doubtless that the firm will probably be properly into deployment by then. This fab, wherever it winds up being constructed, is probably going to be a modern facility. It’s even doable Samsung might intend to use it to deploy a <3nm node. It isn’t unknown for a brand new foundry to debut a mature node whereas a brand new course of continues to be ramping, then to function a launch automobile for stated node 4-6 months later. Samsung has been fairly aggressive with its total foundry roadmap because it makes an attempt to catch TSMC.

Samsung has demanded a 100% tax abatement from Travis County, value an estimated $805.5M. It has additionally demanded a 50 p.c tax abatement from the metropolis of Austin and a $252.5M abatement from the close by Manor college district. Samsung reported a web revenue of $32.5B in 2020. No firm in the United States has beforehand been granted a 100% tax abatement for twenty years and Samsung has not articulated an argument for why it ought to be the first. That doesn’t imply state and federal officers gained’t take the deal, nonetheless. The United States at the moment lacks a modern semiconductor producer, a deficiency state and federal governments are each seemingly eager to treatment. TSMC is already planning to construct a facility in Arizona, although it seems to be as if that manufacturing facility will probably be smaller than Samsung’s, and never a modern facility.

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