Samsung to Invest $1 Billion in Texas Chip Facility
The money is part of a larger $24 billion in capital expenditures for the company, which is looking to rebound after the Galaxy Note7 debacle.Samsung will spend more than $1 billion to boost chip production at its facilities in Austin, Texas, part of a larger strategy to spend almost $24 billion in capital expenditures following the company's problems with its Galaxy Note7 smartphones. The money for the 19-year-old Texas facility will be used over the next eight months to help increase the production of processors for smartphones and other electronic devices. The company not only makes its Exynos systems-on-a-chip (SoCs) for such devices and memory chips—including DRAM and 3D NAND flash memory chips—but also builds processors for other vendors, including Qualcomm. In a statement to the news media, Samsung officials said the decision to invest in the Austin facility was based on what was best not only for customers but also the region. "We are committed to Austin and our contributions to the community," Catherine Morse, general counsel and senior director of public affairs at Samsung Austin Semiconductor, said in a statement to new outlets. "This is our home and we want to ensure our community is healthy and prospering. These investments will support this, while also ensuring our customers' growing needs are met."
According to a report by the Austin American-Statesmen's 512tech site, the $1 billion comes six years after Samsung invested $4 billion to upgrade the plant. The $1 billion will be used to buy manufacturing equipment and to cover construction costs. In addition, the company will hire between 250 and 500 manufacturing technicians as well as some engineers to run the new equipment, Morse told the news site. The plant currently employs about 3,000 people.