SamsungAs part of its efforts to improve manufacturing and reduce the shortage in chips worldwide, Taylor will be building a $17 Billion semiconductor factory over the next 3 years.

South Korean technology giant announced the 5 million square meter facilityTuesday the day following The Wall Street Journal broke the news.

It will be used to boost the production of sophisticated logic semiconductors which are used in smartphones and computers.

Samsung stated that it anticipates construction work starting in 2022, and the site will be operational by 2024.

Samsung will make the $17billion investment, which is the highest ever in the U.S. This includes equipment and machinery, as well as buildings and property improvements.

Samsung started operations in the U.S.A in 1978. It employs more than 20,000 workers across the country. Samsung announced that the latest investment will increase its total U.S. investment to over $47 billion.

Joe Biden, the President of the United States stated in February that domestic semiconductor production is an administration priority. The administration hopes to solve ongoing chip shortages, and respond to concerns from lawmakers that outsourcing chipmaking has made America more vulnerable to supply-chain disruptions.

Kinam Kim is vice chairman and chief executive officer of Samsung Electronics Device Solutions Division. He stated that the factory will allow Samsung to serve its customers better and contribute to stability in the global semiconductor supply chain.

Kim also expressed gratitude for Texas’ support of the Biden administration.

Greg Abbott (the governor of Texas) said that the factory will provide employment opportunities for Central Texans, as well their families.

CNBC’s Alan Priestley, Gartner vice president, emerging technology and trends, said that Samsung already has Texas-based suppliers and partners because of its factory in Austin.

He said that many semiconductor companies maintain development facilities in Austin, which is a great resource.

Priestley stated, “As is the case with large investments such as this, there were no doubts local incentives (tax breaks and financing etc.) to encourage Samsung in Texas.”

Two of Samsung’s main competitions on the semiconductor manufacturing markets are Intel TSMC.

This March Intel announcedThe company is currently spending $20 billion on two Arizona-based chip plant constructions. Meanwhile, TSMC is also building a new factoryArizona

The majority of world’s chip production is currently done in Asia. South Korea, Taiwan, and South Korea are the most active. Europe and the United States want more chips made in their countries.

Headquartered in Hsinchu, Taiwan, TSMC was responsible for 24% of the world’s semiconductor output in 2020, up from 21% in 2019, according to the company.