Samsung’s $18 Billion Investment Sparks Economic Boom in US Semiconductor Industry

Samsung Electronics construction of semiconductor factories in Austin and Taylor, USA, has been worth exceeding $18 billion to the local economy. It has been evaluated that the company has grown into a key company in Texas by creating about 38,000 jobs and significantly contributing to expanding tax revenue.

Samsung Austin Semiconductor (SAS), the U.S. subsidiary of Samsung Electronics, announced an “Economic Impact Report for 2023” on the 20th (local time), which includes such content. The report was classified into detailed items such as economic contribution, direct and indirect employment, tax revenue, community donations, and personnel partnerships.

The economic ripple effect of SAS jumped from $6.3 billion in 2021, before the construction of the Taylor factory, to $18 billion in 2023. It has more than doubled compared to the previous year’s $13.6 billion.

In terms of employment, SAS has created 5,322 direct jobs in Austin. Indirect jobs, such as partners and suppliers, amount to 12,344. They also hired 18,161 people in Taylor. Combining both Austin and Taylor campuses, the total number of jobs to be created is 38,144. They spent $1.7 billion on employee salaries alone in a year.

They also contribute to tax revenue expansion. The annual tax to be paid from the Austin and Taylor campuses is $245.6 million.

In addition, SAS has donated over $4 million to support dozens of charities. They also started the “5-Star Workforce Development Plan” last year. The core of this program is to provide STEM (Science, Technology, Engineering, Mathematics) focused education to everyone from young students to two-to-four-year college students, minorities including women, and veterans. SAS collaborates with major institutions such as the University of Texas at Austin, the University of Illinois at Urbana-Champaign, Texas A&M University, and Taylor Independent School District.

John Taylor, Managing Director of SAS, said, “Since 1996, SAS has become an essential company in Central Texas by leading job creation, economic contribution, and community participation.” He added, “The $18 billion means more than just dollars. It shows that everyone from examinees to doctoral graduates can find opportunities, strive to reach financial and personal goals, and support their families and loved ones.”

Texas Governor Greg Abbott said, “Texas is at the forefront of the semiconductor manufacturing industry in the U.S., thanks to partners like Samsung, which make significant contributions to our economy and community.”

Samsung Electronics has been operating a foundry in Austin since 1996. They built two fabrication plants by investing $18 billion. They are also building a foundry in Taylor by investing $17 billion. The new Taylor factory is expected to start operations as early as July.