{"id":14422,"date":"2023-03-21T02:31:18","date_gmt":"2023-03-21T09:31:18","guid":{"rendered":"https:\/\/essential.construction\/news\/samsungs-texas-chip-plant-price-tag-surges-to-25b\/"},"modified":"2023-03-21T02:31:18","modified_gmt":"2023-03-21T09:31:18","slug":"samsungs-texas-chip-plant-price-tag-surges-to-25b","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/samsungs-texas-chip-plant-price-tag-surges-to-25b\/","title":{"rendered":"Samsung\u2019s Texas chip plant price tag surges to $25B"},"content":{"rendered":"<p> <a href=\"https:\/\/essential.construction\/files\/membership-default-internal\/\" class=\"memberhide\"><img decoding=\"async\" src=\"https:\/\/essential.construction\/news\/wp-content\/uploads\/sites\/15\/2023\/01\/20220718_175041000_iOS.jpg\" alt=\"-\"><\/a><br\/><br \/>\n<\/p>\n<div>\n<p><strong>UPDATE: March 20, 2023:<\/strong> Samsung increased the cost of its Taylor, Texas, factory to over $25 billion last week from its originally planned $17 billion. The South Korea-based electronics company attributes the $8 billion hike to high inflation,\u00a0<a rel=\"nofollow noopener\" href=\"https:\/\/www.reuters.com\/technology\/samsungs-new-texas-chip-plant-cost-rises-above-25-billion-sources-2023-03-15\/\" target=\"_blank\">according to Reuters<\/a>.<\/p>\n<p>That continues to contribute to both lingering overall <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/materials-prices-tick-up-february-construction\/645111\/\" target=\"_blank\">materials price inflation<\/a>\u00a0and supply chain challenges across the construction industry.<\/p>\n<p>Sources said Samsung has already spent about half of the $17 billion originally planned for the Taylor plant, according to the Reuters report.<\/p>\n<p><em>The original story follows below.<\/em><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Samsung Electronics has tapped Mississippi-based Yates Construction as general contractor to build its $17 billion chip plant in Taylor, Texas, located about 30 miles northeast of Austin, the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.bizjournals.com\/austin\/news\/2022\/06\/16\/samsung-taylor-construction-gc-yates-construction.html\" target=\"_blank\"><span><span><span><span><span><span><span><span>Austin Business Journal reported<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. It\u2019s the South Korean company\u2019s largest-ever investment made in the U.S.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>The 1,200-acre project is expected to cover 6 million square feet when completed. The company wants to break ground in 2022 in order to begin operations in the second half of 2024, according to a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.samsung.com\/us\/sas\/News\/Detail\/202111230901001_News_2021FabExpansion\" target=\"_blank\"><span><span><span><span><span><span><span><span>Samsung press release<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Samsung said that the new factory will manufacture advanced computer chips, or advanced logic semiconductors, which are used in phones, computers, cars and other electronics.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Yates Construction has worked on massive <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.wgyates.com\/commercial\/markets\/manufacturing-distribution\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>manufacturing plant projects<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in the U.S. and Mexico for Volvo, Toyota and Nissan. The Samsung project will include buildings, property improvements, machinery and equipment, according to the release.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Semiconductor shortages have roiled many industries in the past year, arising from supply chain disruptions driven by the COVID-19 pandemic, and are likely to be extended by the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/asia.nikkei.com\/Business\/Tech\/Semiconductors\/Ukraine-war-to-extend-chip-supply-crunch-semiconductor-group\" target=\"_blank\"><span><span><span><span><span><span><span><span>war in Ukraine<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> which is choking availability of key materials. Samsung is one of many companies attempting to geographically diversify its semiconductor manufacturing operations.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>&#8220;With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain,&#8221; said Kinam Kim, vice chairman and CEO of Samsung\u2019s Electronics Device Solutions Division, in the press release.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>President Joe Biden said in February that domestic semiconductor manufacturing is a priority for his administration, and put forward a series of federal funding and tax incentives for semiconductor manufacturing, including the $52 billion CHIPS Act, in order to spur more production in the U.S. While the CHIPS Act passed in January 2021, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.cnbc.com\/2022\/05\/25\/gina-raimondo-warns-us-needs-to-secure-future-for-chip-industry.html\" target=\"_blank\"><span><span><span><span><span><span><span><span>congress has yet to pass a bill<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> funding its provisions. However, top Democrats said Tuesday they\u2019re <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.reuters.com\/world\/us\/us-congressional-leaders-meeting-semiconductor-chips-bill-tuesday-2022-06-21\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>hopeful a deal could come<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> next week.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In the meantime, other American semiconductor factory projects are moving ahead, including <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/amid-domestic-semiconductor-wave-texas-instruments-begins-30b-build\/625430\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Texas Instruments\u2019 build<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in Sherman, Texas, and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/intel-breaks-ground-on-2-arizona-chip-plants-worth-20b\/607760\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Intel\u2019s two plants<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in Chandler, Arizona<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5143531171910809\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- News - Bottom -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-5143531171910809\"\r\n     data-ad-slot=\"8320848692\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/samsung-picks-builder-yates-construction-17b-chip-plant-taylor-texas\/625884\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>UPDATE: March 20, 2023: Samsung increased the cost of its Taylor, Texas, factory to over $25 billion last week from &#8230; <a title=\"Samsung\u2019s Texas chip plant price tag surges to $25B\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/samsungs-texas-chip-plant-price-tag-surges-to-25b\/\" aria-label=\"Read more about Samsung\u2019s Texas chip plant price tag surges to $25B\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-14422","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/14422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=14422"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/14422\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=14422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=14422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=14422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}