Samsung will reportedly double its investment in Texas to a whopping $44 billion to create advanced computer chips needed for smartphones, artificial intelligence and national defense — as the company rakes in massive profits from the critical components.
The South Korea-based tech giant will spend $20 billion to build a new chip production plant as well as a new facility for packaging, research and development, the Wall Street Journal reported, citing sources familiar with the company’s plans.
The upgrades are earmarked for the company’s base in Taylor — about 30 miles north of the state capital, Austin — where it was already building a production hub that includes a $17 billion chip-making factory and related facilities.
Samsung’s expansion in Texas will be funded in part by billions of dollars in federal subsidies tied to the US CHIPS Act — a sweeping bipartisan law aimed at jumpstarting domestic production of the critical chips amid deteriorating diplomatic relations and rising competition with China.
The subsidy package is reportedly set to be one of the largest received by a single company.
Samsung, along with Intel and Taiwan Semiconductor Manufacturing, is one of the few firms with the know-how to create the computer chips.
Samsung representatives did not immediately return a request for comment.
The company is expected to announce its plan for more spending in Texas at an event on April 15, according to the Journal.
The report surfaced just one day after Samsung forecast blockbuster growth in its upcoming quarterly results, bolstered by steep demand for chips.
Operating profit is expected to jump by 6.600 trillion won or the equivalent of $4.89 billion.
That would mark an incredible 931% increase compared to the same quarter one year ago.
Revenue was projected to increase 11% to 71.000 trillion won.
Samsung will formally unveil earnings on April 15.