Samsung Builds Advanced Chip Plant in Texas with Projected Budget of over $25 Billion, Facing Cost Increases Due to Inflation

Samsung is reportedly increasing its investment in the construction of its chip factory in Taylor, Texas, according to two insiders. The initial projection of the investment was over $25 billion, but it is now expected to exceed $33 billion due to rising building costs and inflation.

As they can impact the availability and cost of components. With Samsung's increased investment, it may see a rise in the production and availability of advanced chips for AI, 5G, and smartphones. This could benefit companies that rely on these components for their products, such as those in the tech, automotive, and healthcare industries.

Furthermore, the US government's push to increase local chip production through the chip act could potentially result in more funding for chip manufacturers. This could further boost the production and availability of chips, as well as create more high-tech job opportunities in the industry.

It's also worth noting that Samsung's rush to complete the factory by 2024 is likely due to the deadline for investment tax credits in 2026. This could mean that the company will continue to invest in the construction of more factories in the future, which would have a significant impact on the industry and the availability of components.