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If you can’t beat ‘em, supply ‘em   

If you can’t beat ‘em, supply ‘em   

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Texas: the land of cowboys, BBQ, cattle, and (soon enough) of giga-factories and chips. Yes, you've read that correctly. After Tesla (TSLA) chose to build its $1b giga-factory in Austin, Texas is now ready to welcome another multinational corporation. This time, we're talking about Samsung, which chose to build its $17b chip manufacturing hub in Taylor.  

Samsung's new factory will cover up to 1,200 acres and provide jobs to over 1,800 people. The construction of the factory should commence soon, as the company hopes to start producing chips by early 2024. The decision to build another factory comes after Samsung invested $205b in chip production and biotech, making this sector its main focus for at least the next three years.   

Samsung's decision to open up a new chip factory comes in the midst of a global semiconductor crisis. With the crisis likely to spill over into 2022, Samsung's move should help the US recover lost ground to China and Taiwan, which currently lead in chip production. The US is also expected to provide some sort of federal incentives for chipmakers like Samsung.     

Why it matters

Texas has witnessed a surge in tech production plants over the past few years. Favorable tax laws and relaxed regulations have caught the eye of domestic and foreign multinational corporations looking to manufacture in the US while keeping costs at a minimum. Tesla and Samsung are most likely not going to be the last companies to set foot in the Lone Star State. 

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