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Samsung dips $3.6B for U.S. fab expansion

Posted: 14 Jun 2010 ?? ?Print Version ?Bookmark and Share

Keywords:Samsung fab expansion? logic chip? NAND flash?

"This investment, along with the creation of Samsung Austin Semiconductor's first research and development entity this spring, makes the Austin campus a true semiconductor complex and ensures Austin's premier status as a center for semiconductor research and manufacturing," said W. S. Han, president of Samsung Austin Semiconductor.

Equipment move-in and build-out of the clean room will begin almost immediately. "We expect that the facility will be operational by the second quarter of next year," he said.

In March, the company established Samsung Austin Semiconductor Research Center (SARC), which will concentrate on the design of Large Scale Integrated circuits, but is not part of the LSI manufacturing line. The center's director is Keith Hawkins, a veteran semiconductor researcher, who was senior director of design engineering-microelectronics at Sun Microsystems in Austin prior to joining Samsung.

SARC will employ about 50 researchers by the end of 2010.

Samsung started in Austin in 1996, when it began construction of its first plant. In total, Samsung has invested about $5.6 billion in the Austin locationby far the largest foreign investment in Texas and one of the largest single foreign investments in the United States.

The new investment will bring the total Samsung investment in Austin to more than $9 billion.

Employment at the Austin site is expected to grow from 1,000 employees to about 1,500 by 2011. The annual payroll in Austin will grow from its current $70 million to about $105 million.

Most of the new employees will be engineers and technicians, who will operate the highly automated equipment at the state-of-the-art plant.

Samsung, which already is the largest Austin Energy customer with an annual electrical utility bill of about $32.9 million, will substantially increase its electricity purchase by more than $45 million per year. Water and waste water purchases from the city will grow to almost $13 million per year.

Since 1996, Samsung Austin Semiconductor has paid about $120 million in local and state taxes.

In addition to the Samsung direct employees, almost 3,000 construction workers and equipment vendors will be at the plant to move in and set up the complex machinery that operates the semiconductor plant.

General contractor for the project is Samsung Texas Construction Inc.

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