Price tag for new Samsung Texas chip factory soars over $25 billion

TThe new cost of he Samsung In chip factory Texas They have increased to more than $25 billion, a significant increase from the $17 billion originally forecast.

According to a report, the skyrocketing cost of steel is mostly due to its rising price since last year’s construction. Reuters Report.

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“The higher construction cost is about 80% of the cost increase,” One insider informed the outlet. “The materials have gotten more expensive.”

Two sources claimed that the company spent about half the $17 billion initial budget to finish the factory in time for it to begin production in 2025, ahead of schedule.

The $25 billion new figure will mean that the cost of the single facility will exceed half of the company’s US operations since 1978. According to Samsung’s website.

The facility is planned for Taylor, Texas. It is located just 30 miles from Austin, Texas. The facility will provide high-tech jobs for 2,000 people and construction jobs for several thousand more once it’s completed.

There are many leading Republicans For reasons ranging anywhere from job growth to national safety, the plant was enthusiastically endorsed.

“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” Gov. Greg Abbott (R-TX) said.

“Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.”

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Rep. Michael McCaul (Republican from Texas) highlighted the national security implications for the plant.

“It is imperative to the national security of the United States that we increase our leadership in the future design, manufacturing and development of advanced semiconductor chips,” He stated. “Of course, there is no better place for this important effort than the great state of Texas. I am thrilled to join Gov. Greg Abbott and Sen. John Cornyn in congratulating Samsung on its new semiconductor plant in Taylor, which will add thousands of high-paying jobs in the local area and ensure our state is a leader in chip manufacturing.”