Following TSMC, the global semiconductor leader Samsung Electronics will also build factories in the United States.

　　Recently, Reuters reported that Samsung Electronics will choose Taylor, Texas, USA as the location of the new plant, which will cost US$17 billion. The 5nm project with a monthly output of 20,000 wafers will begin mass production in 2024.

　　TSMC and Samsung went to the U.S. to build factories one after another

　　In order to further master the chip industry chain, the United States requires chip companies such as TSMC and Samsung to set up factories in the United States. At the same time, the United States has introduced relevant subsidy regulations, which will release 54 billion U.S. dollars to encourage semiconductor production and research in the United States.

　　As early as 2020, TSMC announced that it plans to spend US$12 billion to build a 5-nanometer chip factory in Arizona, USA. The first batch of engineers hired by the United States arrived in Taiwan in late April this year to receive training in 5 nanometer technology.

　　TSMC expects that the semiconductor equipment of the US factory will enter the factory in the second half of 2022, and the 5nm phase 1 project with a monthly output of 20,000 wafers will start mass production in 2024.

　　TSMC stated in its interim results that the first batch of engineers hired by the United States had arrived in Taiwan in late April to receive training in 5 nanometer technology.

　　Coincidentally, according to the latest news report, the chip giant Samsung has decided to go to the United States to build a factory and has finalized the site selection.

　　This time Samsung will choose Taylor, Texas, the United States as the location of the new plant. The plant costs US$17 billion. This is also Samsung’s largest investment project in the United States. It will break ground in the first half of 2022 and plan to start operations in the second half of 2024.

　　The Samsung chip factory, which has invested a huge amount of US$17 billion, is not only used to produce chips, it will also be used to produce advanced technology products in the fields of mobile devices, 5G, HPC high-performance computing, and artificial intelligence.

　　This is not the first time Samsung has built a factory in the United States. The first chip factory put into production by the giant in 1996 was also in Texas, only 30 miles from the new factory. The two factories can share many facilities.

　　Why did Samsung choose to build a factory in the United States?

　　First of all, it may be related to the political pressure in the United States. Prior to this, the Biden government and many state governments in the United States introduced measures to require and encourage global semiconductor companies to invest in the United States, with the intention of revitalizing the US semiconductor manufacturing industry and grasping the lifeblood of the global chip industry.

　　In September of this year, in the name of responding to the global chip crisis, the US Department of Commerce forced more than 20 semiconductor-related companies, including TSMC and Samsung Electronics, to provide confidential data before the 8th of this month. As the deadline approaches, TSMC, Samsung and other companies are forced to compromise with the United States.

　　Secondly, Samsung's establishment of a factory in the United States can obtain superior conditions that other countries do not have.

　　As an incentive to build a factory, Taylor City promised to provide Samsung with a 92.5% real estate tax reduction for the first 10 years, and also to reimburse Samsung’s development and review costs for building a factory. It can be said that in order to attract Samsung to build factories in the United States, the United States has shown some sincerity.

　　In addition to tax relief, Samsung can also get technical help. You know, in the birthplace of the chip industry, a series of chip giants such as Intel and Texas Instruments were born. Not only can they communicate with many companies in the same industry, but they can also quickly form employees and reduce personnel expenses.

　　Finally, Samsung took the opportunity to catch up with TSMC in order to gain more voice in the United States. A person in the South Korean semiconductor industry said that the investment in the US to build a chip factory this time means that Samsung has officially started chasing TSMC in order to realize its "System on Chip 2030" strategy of becoming the world's largest semiconductor company.

　　In addition to TSMC and Samsung to build factories in the United States, Intel also plans to invest US$20 billion to build two chip factories in Arizona.

　　As early as September 24, Intel officially broke ground on two new chip factories in Arizona, which will produce external foundry chips. The two new chip factories were named Fab 52 and Fab 62 and cost US$20 billion. They were built in Intel’s Ocotillo campus in Chandler, Arizona, and will eventually bring Intel’s total number of factories in the Ocotillo campus to six. Since it started manufacturing chips in the state 40 years ago, Intel's total investment in Arizona has exceeded $50 billion.

　　Two new factories in Arizona are expected to be fully operational in 2024. These factories will use Intel’s most advanced chip production technology. Intel hopes to regain its leading position in chip manufacturing in 2025.

　　There is no doubt that the competition among the three semiconductor giants will intensify in the future. With the finalization of Samsung's plant construction plan, it is one step closer to the Biden government's goal of promoting local chip manufacturing.