Published on 17th November 2023
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Project at a Glance |
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Project Name |
Taylor Semiconductor Manufacturing Plant |
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Project Type |
Greenfield |
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Project Location |
Taylor, Texas, USA |
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Sector |
Construction |
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Subsector |
Semiconductor Plant |
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Project Value |
USD 25 billion |
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Project Status |
Contract Awarded |
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Main Contractors |
Yates Construction and Samsung C&T |
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Project Developer/Coordinator |
Samsung Electronics |
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Project Start Date |
2022 |
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Project Completion Date |
2024 |
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Special Mention |
The largest-ever investment by Samsung in the US |
Taylor Semiconductor Manufacturing Plant is the largest-ever investment made by Samsung Electronics in the United States. The groundbreaking ceremony of this project was done in the year 2022 and the operations are said to begin in the second half of 2024.
The total estimated cost of construction for the project is said to be USD 25 billion the officials. Samsung Electronics has chosen Yates Construction and Samsung C&T as the general contractors for the Taylor Semiconductor Manufacturing Plant.
Samsung Electronics, one of the largest semiconductor manufacturers in the world announced its plan to to build a semiconductor wafer fabrication plant in Taylor, Texas in November 2021. This decision was made by Samsung in the midst of a global scarcity of chips, which has had a negative impact on numerous industries, including the automotive and electronics sectors.
According to the company's statement, it will continue to help clients all over the world by making advanced semiconductor fabrication more accessible and by satisfying the growing need for semiconductor products.
Samsung's decision to set up this plant in the USA can also be attributed to the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors and Science Act). It is a federal law in the United States that intends to enhance domestic semiconductor manufacturing and research endeavors. As per the Act, the US government has allocated USD 52.7 billion over a five-year period to bolster research, development, and manufacturing initiatives in the semiconductor sector.
Samsung's Semiconductor Manufacturing Plant is strategically located in Taylor, a city in Texas. Samsung's current facility in Austin is just 25 km southwest of Taylor which is one of the reasons for the selection of this location for the manufacturing plant.
Multiple locations were viewed by the company and finally, the investment in Taylor was based on its multifaceted benefits such as the local semiconductor ecosystem, support of local government, stability in infrastructure, and opportunities for community development.
Samsung Electronics together with Yates Construction and Samsung C&T are constructing the technologically advanced semiconductor facility in Taylor, Texas. The construction work started in the first half of 2022 and included a building for the supply of chemicals and gases, an office building, a massive back house, a water reclamation facility, and a substation for electricity.
To mitigate the impact of surface tremors, both the production plant and the primary offices have been suspended using drilled shafts anchored into the ground. A total of 20,000 holes were drilled, accommodating piers extending 110 feet into the ground for stabilization. Notably, the project incorporates specialized exhaust ducts with a diameter of 14 feet. The construction process was expedited through the widespread utilization of precast concrete in the facility.
The plant also includes an air separation plant to produce gases such as liquid nitrogen and argon. The company also plans to install electrolyzers for the supply of hydrogen. The new 4 nm designs that Samsung has developed will be used by the Taylor semiconductor plant to manufacture chips. This project is expected to generate 2,000 direct jobs.
The project is spread over an area of 1,200 acres and is the largest-ever investment made by Samsung Electronics in the United States. Making use of cutting-edge process technologies, the new facility will produce goods that can be utilized in a variety of fields, including mobile, fifth-generation (5G) wireless networks, artificial intelligence (AI), and high-performance computing (HPC).
When the project was announced, the estimated cost of construction was set at USD 17 billion out of which USD 6 billion was to be spent on buildings and other property improvements and USD 11 billion on machinery and equipment. However, the budget was revised to USD 25 billion.
Samsung is looking for a solid public partner to help with the project, offering monetary assistance as well as other benefits including utilities and infrastructural support. As this project falls under the purview of the Chips Act, it will receive aid worth up to 15% of the total cost from the federal government of the United States.
Samsung Electronics has chosen Yates Construction and Samsung C&T as the general contractor for the project. An agreement was signed between Samsung and EPCOR Utilities Inc. to build a water pipeline from Alcoa to the plant.
The other contractors involved in the gab project in the USA include Samsung E&C America, Samsung Engineering, Austin Bridge & Road, Blue Sky, Coreslab Structures (Texas), Heldenfels Enterprise, Hensel Phelps, JMEG, and Lauren Concrete.
The Taylor Semiconductor Manufacturing Plant project will result in the construction of a technologically advanced facility that is geared toward producing sophisticated semiconductor products. Through the promotion of innovation and the fulfillment of the ever-growing need for semiconductor components, this enterprise intends to make a substantial contribution to the technological landscape.
Taylor's dedication to achieving perfection in both the production and innovation of semiconductors is aligned with the completion of this project. It will mark an important turning point in the expansion of commercial capabilities.
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