Samsung Is Building a $17 Billion Chip Factory Right On Tesla's Doorstep

Electric Vehicles / 51 Comments

These companies mess with Texas.

As the race for electric supremacy heats up, manufacturers across the globe are scrambling to secure resources and establish reliable supply chains. As one of the biggest players in the EV market, Tesla requires massive amounts of hardware that it can't produce itself, and more specifically, semiconductor chips. The auto manufacturing world has been severely crippled by the recent chip shortages, and Tesla has not escaped the drought unharmed. Upcoming models such as the highly anticipated Tesla Roadster and Cybertruck have been continuously delayed, but there seems to be a light at the end of the tunnel: according to sources, Samsung is planning a $17 billion chip factory a few miles from Tesla's Giga factory in the state of Texas.


The Korean corporate giant is set to meet with Taylor City authorities this week to discuss details surrounding the massive project which is expected to cost $17 billion. According to Teslarati, an anonymous source told reporters that "so far, (Samsung Electronics) has thoroughly reviewed four to five locations for the 'Star Project.' What I learned is that (Samsung) finally chose Taylor after taking into account investment incentives and geographic conditions." The sheer size of the new plant is astonishing: at over 51 million square feet, it will be over four times the size of the company's factory in Austin, Texas.

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"If you set up the new facility in a location away from the Austin plant, it could cost Samsung more for the supply of water and electricity and the establishment of other infrastructure. But the advantage is that it can operate the line in a more stable manner," the insider said. Samsung is a key supplier to Tesla, and this move will clearly benefit both companies, with plans already in motion for a collaboration on a new version of Tesla's FSD computer. The new plant will also benefit from tax breaks of over $300 million, and the groundbreaking ceremony has been pegged for the first quarter of 2022, with operations planned to begin in 2024.

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Source Credits: Teslarati

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