SEOUL (Reuters) – South Korean tech giant Samsung Electronics Co Ltd announced Wednesday that it has chosen Taylor, Texas to build a $17 billion new chip plant. The facility will produce advanced chips such as 5G and mobile phones.

In a statement, Samsung (KS) stated that the plant will provide high-tech employment for 2,000 people. Construction would begin in the first quarter of next year with production expected to commence in the second half 2024.

World’s largest memory chipmaker, and second-largest contract manufacturer, had considered Arizona and New York as potential locations for its plant. It will be larger than the only U.S. plant it has in Austin, Texas.

Samsung decided Texas once again on the basis of infrastructure stability and government support, as well as proximity to its current plant.

According to sources, the site located in Texas’ Williamson County near Taylor offered the best incentive package among the possible sites Samsung had been considering.

Samsung joins rivals TSMC (NASDAQ:), Intel (NASDAQ) and others in the race for chip contract manufacturing expansion in America, where it is considered a strategic area with China.

The administration of U.S. President Joe Biden has pledged billions in federal funding for chip manufacturing research and development to give it an advantage over China and address the shortages in critical industries such as autos.

“In addition to our partners in Texas, we are grateful to the Biden administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the U.S.,” Samsung Electronics Vice Chairman Kinam Kim said in a statement.

We also want to thank Congress and the Administration for supporting us in enacting federal incentives for innovation and chip production at home.

Samsung is not revealing the specifics of its new plant beyond advanced logic chips that can power smartphones and other autonomous vehicles.

Analysts predicted that it would make cutting-edge chips in the 5-nanometer range using ASML machines built by the Netherland, which will be used for clients large like Qualcomm (NASDAQ).

The chips have a higher data rate than the chips Samsung makes at its U.S. facility in Austin.

Samsung stated that the Taylor site is located approximately 25 miles (40kms) away from Austin and covers more than 5,000,000 square meters.