Tech giant may be chipping in $10 billion for new factory in Austin

So they thought the $ 1 billion Apple campus and the $ 1.1 billion Tesla plant were big deals for Austin. Well, there’s news now that tech giant Samsung is considering building a chip mill in Austin worth over $ 10 billion.

Citing unnamed sources, Bloomberg News Service reported Jan. 22 that Samsung had made preliminary plans for the factory. Construction could begin this year and the facility could be operational in 2023. It is not known how many employees Samsung would hire to operate the new manufacturing facility.

Bloomberg notes that Samsung purchased 258 acres off its existing Austin operations in October. Two months later, Austin City Council approved Samsung’s proposal to redesign this property for industrial development, although at the time it was unclear what that development would mean.

“Samsung is so often a source of good news in Austin, whether it’s about jobs, education, human resource development, housing or helping the homeless,” Mayor Steve Adler said in 2016.

In 1997, Samsung opened a $ 1.4 billion chip manufacturing facility near East Parmer Lane and Dessau Road in northeast Austin, the South Korean conglomerate’s first semiconductor plant in the United States. Ten years later, Samsung opened a $ 3.5 billion chip manufacturing facility in the same location. In 2016, Samsung announced it would spend $ 1 billion to modernize its 300-acre manufacturing complex in Austin.

Over time, Samsung has invested around $ 17 billion in its local presence. Nikkei Asia news agency noted in December that Samsung sees its Austin manufacturing campus “an important role in promoting contracts from American tech companies.”

The Austin Business Journal ranks Samsung with 12,300 employees as the twelfth largest employer in the Austin area. The Korea Herald reported in December that Samsung has been hiring more than 400 people in Austin in recent months. As of January 22, the Samsung website listed 38 vacancies, mostly for engineers.

Samsung’s potential expansion comes with Tesla continuing to build its auto manufacturing facility near Southeast Austin and Apple working on its second office campus in northwest Austin. Last year Austin was ranked the country’s sixth best metropolitan area for business relocation and expansion by Site Selection magazine.

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