Samsung Eyes Austin Texas For $18 Billion 5nm EUV Fab To Feed Intense Chip Demand

samsung exynos
There has been a lot of talk about chip fab expansion in recent months due to immense global demand from multiple sectors. To address this demand, Samsung announced earlier this month that it would devote $151 billion to expand its chipmaking footprint over the next decade. While that significant announcement was geared toward fabs in South Korea, Samsung is also looking to investments within the United States.

According to a new report out of South Korea, Samsung will build a new 5nm EUV fab in Austin, Texas. 5nm is [currently] Samsung's state-of-the-art process node used for its own products like Exynos 2100. However, by the time this new fab comes online in 2024, 5nm will likely be a more mature process node used by customers who value economy over outright performance. This will also mark the first time that Samsung will produce 5nm chips are made outside of its home market.

The report says that construction on the fab will start in Q3 2021 at an estimated cost of $18 billion. Interestingly, Samsung will reportedly construct this new 5nm fab adjacent to its existing fab in Austin. The older facility currently produces chips using the 14nm process node.

"It is likely that Samsung Electronics has decided to build EUV foundry lines in the United States because such global companies are concentrated in the United States and there have been increased demands for smaller semiconductors from major companies such as Amazon, Google, Microsoft, and Tesla," writes ETNews.

It's reported that the announcement of the new fab will be made this Friday when U.S. President Joe Biden and South Korean President Moon Jae-in meet for a joint summit. In late February, the Biden administration pushed for a $37 billion "Chip Stimulus" to help address the ongoing chip shortage by investing in U.S. fabs. This Samsung effort would represent a small step in bolstering America's semiconductor industry.

Samsung isn't the only company investing heavily in new fabs to address demand. Intel has committed $20 billion to construct two new fabs in Arizona, while TSMC is pouring $100 billion into fab construction over the next three years. There are also rumors that TSMC could build up to six new fabs in the United States to meet the needs of its customers.