Samsung pushes ahead with $3.9 billion chip production investment
Back in August, we heard that Samsung wanted to go forward with a substantial investment in a Texan plant to boost chip production. Now, U.S. officials have given their approval.
Samsung Electronics plans to turn the Austin chip-making plant into a more profitable venture through the $3.9 billion investment, which needs a renovation to try and cope with the increasing demand for mobile devices including smartphones and tablets. Now talks have been completed with Texan officials, production line expansion and renovation has been given permission to go ahead, according to Reuters.
Supply-chain issues have the potential to affect any new product launch for a tech firm, and by improving its core production facilities, the firm can better protect itself against problems with supply and demand in the future. The latest investment in the Texan plant brings Samsung's total investment figure to over $13 billion since the plant went into operation in 1996.
Despite its continuing legal issues with competitor Apple, Samsung supplies memory chips to the iPad and iPhone maker, as well as manufacturing components for its own products, including Samsung Galaxy smartphones.
This latest investment joins an $1.98 billion investment for the construction of a new chip-making facility in South Korea earlier this year.