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Samsung Electronics Floats Nearly $200 Billion Spend on New Texas Plants in Next Decades (wsj.com) 102

Samsung Electronics has floated the prospect of investing nearly $200 billion for 11 new chip-making plants in Texas over the next two decades, a mega splurge that if executed would dramatically boost its semiconductor foothold in the U.S. From a report: The South Korean tech giant's proposed spending was divulged in recent filings submitted to the Texas Comptroller's office and made public Wednesday. One likely motivation is a year-end expiration of a Texas state incentive program offering property tax breaks for 10 years for large investments. The filings don't commit Samsung to invest. The Suwon, South Korea-based company doesn't currently have specific plans to pursue the new factories outlined in the filings, a Samsung spokeswoman said. The spending proposals reflect the company's long-term planning process to evaluate the viability of further U.S. expansion, she added.
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Samsung Electronics Floats Nearly $200 Billion Spend on New Texas Plants in Next Decades

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  • by IWantMoreSpamPlease ( 571972 ) on Thursday July 21, 2022 @11:24AM (#62722030) Homepage Journal

    "Trust, but verify"
    IOW, I'll celebrate this when it actually happens, not before.

    • by Anonymous Coward
      This will turn out just like the big factory that Foxconn was going to build in Wisconsin. These companies just love to announce big projects, even though there is only about a 0.001% chance that they are actually going to do it.
      • by Anonymous Coward
        in texas?!?
        Don't they need a fuckton of water for their manufacturing processes?
        Water they don't and won't have due to the drought in the west?
        And relying on a power grid that has no redundancy?
        How does this make business sense?
        • Water is not generally a problem in most parts of Texas. Not like it is in say, California, where you have crazy population density in a desert.

          Dallas typically gets about three inches of rain in June, vs 0.1 inches in Los Angeles. So yeah, 30 times as much rain, on average.

          This year was very strange. There was no rain in June. This week is a bad week to need a lot of water. They won't open the manufacturing plants this week.

          • Hey! Dallas and LA are in different rain zones, and have a different distribution of rain during the year. You know that, so don't try a one month comparison.

            From https://www.currentresults.com... [currentresults.com]
            City | Rain days | Annual in | mm
            Dallas, TX 82 38.3 973
            Los Angeles, CA 34 14.3 362
            Phoenix, AZ 33 7.2 183

            And PHX has some very large fabs. I used to work next to two. Water is a real problem, but they've gotten far mor

            • June is the relevant month for "this drought", because the lack of any rain in June is what's causing the current issue in Texas.

              As you noted, Dallas typically gets over twice as much rain as LA or Phoenix. It's also more consistent, with more than five times as many rainy days as Phoenix.

              • Most of this year has been a problem. I track the Dallas historical precipitation numbers. Every month this calendar year has been substantially below average. January saw only 0.08 inches of precipitation, 96% lower than the historical average (and an abnormally dry December didn't help). Here is the total monthly precipitation so far this year measured in inches followed by the 30-year historical average and then the difference in percentage:

                Jan: 0.08 | 2.36 | -96.6%
                Feb: 2.03 | 2.73 | -25.6%
                Mar: 2.12 | 3.

                • Thanks for that detailed info.
                  We're headed into hurricane season. Hopefully some storms bring some rain our way.

                  You provided averages for the months so far. Just for fun in case anyone else is still reading, here are the averages I found for the rest of the year:

                  Jul 2.12in.
                  Aug 2.03in.
                  Sept 2.42in.
                  Oct 4.11in.
                  Nov 2.57in.
                  Dec 2.57in.

                  • Looking at the list above, I realized I pulled July's number from the historical average (1899-2021), though it doesn't really change things that much as the 30-year average is 1.91 inches and zero is zero. Here's the actual last 30 from my charts for the month. (Annual doesn't equal the sum of the monthly averages because each set is averaged on its own.)

                    Jan: 2.36
                    Feb: 2.73
                    Mar: 3.32
                    Apr: 3.25
                    May: 4.64
                    Jun: 3.54
                    Jul: 1.91
                    Aug: 2.60
                    Sep: 2.55
                    Oct: 4.20
                    Nov: 2.57
                    Dec: 2.47
                    Annual: 35.74

                    I source everything from the Nati

                    • Thanks again.

                      It's too bad that with all of your knowledge about precipitation here, you can't answer the one question everyone wants answered - when are we going to get some dang rain!?

                    • Well, it was going to be Friday, but then it got canceled, because apparently we haven't had enough 100+ degree days yet.

        • by clovis ( 4684 )

          I'm not sure how much a fuckton of water is. Is it more than a Library of Congress full/football field (American).
          East Texas is more like Lousiana than West Texas.
          Houston averages over 40 inches a year of rain. When hurricanes visit it can be 60-80 inches.

        • Pretty sure most fabs have water recycling as a part of their operation plan. You should examine the water situation in Taiwan to see how it affect TSMC and farmers there.

          https://www.industryweek.com/s... [industryweek.com]

  • by mrex ( 25183 ) on Thursday July 21, 2022 @11:25AM (#62722032)

    Sounds great, just make sure to uninstall all the default apps in the plants to save like 30% of your resources.

  • Suprising (Score:4, Interesting)

    by wakeboarder ( 2695839 ) on Thursday July 21, 2022 @11:26AM (#62722038)

    since texas yanked the plug on one of their plants during low power and cost them millions of dollars.

    • Yeah really bad idea given the current climatological trends and the apparent unwillingness of Texas to address it.
    • Wonder how many of the Samsung execs will get called a "chinamen" during their vists?

    • Re:Suprising (Score:5, Insightful)

      by BetterSense ( 1398915 ) on Thursday July 21, 2022 @03:20PM (#62722758)
      The supposed inferiority of the Texas power grid is a disappointing fake-meme to see propagated on a supposedly technical site.

      People act as if power grids never go down in places besides Texas. Or they pretend that Texas's power grid is worse, but they never actually check if that's true. Why go to the trouble when you can just forward meme links instead.

      Widespread outages from severe weather unfortunately happen. Hurricane Sandy caused outages in 24 states! The Northeast blackout in 2003 impacted over 50 million people. Texas's recent outage barely even makes it onto the list of notable or deadly power outages.

      In the case of the semiconductor industry, I know about this because I work in the semiconductor industry, including in Texas. Texas saved Samsung billions of dollars by coordinating with Samsung to do a controlled factory shutdown during the ice storm. Seriously, due to above-and-beyond professional management by Texas during the ice storm, Samsung saved literal billions. When discussing Samsung's plans to further expand manufacturing in Texas, Samsung specifically mentioned the strength of the Texas power grid as one of the reason for expanding there.

      When I worked at a large fab on the east coast, we had power outages that cost us millions of dollars, and we had them multiple times per year, with no warning or help from the state. But that doesn't make the news or stoke the "TX is bad" echo chamber.

      By the way, Texas also has tons of wind power (over 30GW), more than any other state. The installed wind capacity in Texas is greater than any other COUNTRY except China. Texas is also poised to surpass California in installed utility-scale solar.

      Texas is practically a gold standard when it comes to energy, including green energy, and including grid quality and stability, but that won't stop the memes.

      https://www.eia.gov/todayinenergy/detail.php?id=47636#:~:text=The%20installation%20of%202.5%20GW,in%20Texas%20to%2014.9%20GW.
      • by Klaxton ( 609696 )

        I'm glad to hear that Texas coordinated with Samsung during the ice storm, but nevertheless there were very significant power outages that were entirely preventable. And apparently they still aren't being prevented, the Texas legislature refused to require winterization in the recent session.

        Also note that Texas is isolated from the national grid so the state doesn't have to abide by federal regulations. This means Texas can't draw on neighboring grid electricity during shortages. And there are shortages, t

        • There are multiple HVDC links into Texas that allow it to draw from the national grid. Similar to the links between the northern and southern grids in Japan. More fake news.
          • by Klaxton ( 609696 )

            No cite? A couple of links doesn't mean it is integrated.

            "a deregulated energy market largely isolated from the rest of the country’s power grid"
            https://www.texastribune.org/2... [texastribune.org]

            ""Other states require you to have cold weather packages on your generation equipment and require you to use, either through depth or through materials, gas piping that is less likely to freeze,""

    • Better get the heck out of China's sphere of influence before the CCP makes an offer Taiwan can't refuse.

  • I hope these plants are energy efficient. Texas is warning people not to set their AC too low or the Freedom Grid will collapse.

    • Yeah, and those Europeans have been trying to set limits on A/C in public buildings too. I guess they're just as bad as those hicks in Texas. Or maybe that's generally a good idea.
      • Unprecedented heatwave in an area that never gets them or a region known for regularly breaking 100F. Yes totally the same.

  • by rsilvergun ( 571051 ) on Thursday July 21, 2022 @12:10PM (#62722172)
    And what electricity? We're not doing anything about the Southwest running out of water. And the power grid is constantly on the verge of collapse.

    Nobody's going to invest there. Not for real anyway. And pretty soon anyone who has enough education to get a job somewhere else it's going to move because there's no water and no electricity. The political climate doesn't help either.
    • by fermion ( 181285 )
      Parts of Texas has plenty of water and plenty of electricity and plenty of educated workers. The issue arises when one pits everything in Austin where there is no water or electricity and the only universities are party schools like UT and religious training camps.

      Remember,near, the original companies that gave us a lot of tech, and affordable tech, were between houston and Dallas up to Oklahoma. Texas Instruments, Compaq. Yes like worldwide if temperatures get extreme, production has to shut down. Taiwan

      • Samsung has a pretty big fab in Austin already (and it's been there for over 10 years).
        • Yeah and the water is running out now. Just because they moved in when there was water doesn't mean they will always be water. The same goes for electricity. It's bizarre that people can't come to terms with that. The Colorado River is so low they're cutting off the rest of the Southwest. It's happening within about 60 days. You haven't heard about this because our media is ignoring it. Solving the problem will require large scale government action which will in turn require taxing very wealthy people to pa
      • With the talking points people like you use to shift the blame and avoid actually addressing the problem. It used to be almond growers that you guys went after now I guess it's college kids. College kids makes more sense because the old folks that you're trying to convince that there is no water crisis don't like college kids or young people in general.

        Just to be clear Texas is a state and everyone who lives in that state is either a citizen of that state or a guest of that state and has every right and
      • by Klaxton ( 609696 )

        There definitely is water and electricity in Austin.

        The drinking water mostly comes from Lake Travis, a nearby reservoir lake. The city owns several electricity generating plants and gets 23% from renewables.

        https://en.wikipedia.org/wiki/... [wikipedia.org]

    • Samsung will likely pony up for their own generation facilities. Not sure on the water, but as other posters here opined, Texas has pretty good water availability through rainfall, and a lot of modern fabs are using water recycling. See Intel's material on water recycling at their Chandler facility:

      https://www.gilbertsunnews.com... [gilbertsunnews.com]

  • While Intel is begging the Feds and the EU to prop up their failing business, Samsung is spreading their wings and localizing manufacturing to markets that need it. You want a steady chip supply, United States? Let Samsung and TSMC do it for you.

    When you see how your (our) native darling Intel has been spending their money, you'll regret giving them anything.

  • .... maybe they'll just make their own.
  • Just need to make sure some moron is in power and they will get anything they want and will not have to deliver.

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