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Late in 2020, rumors began swirling about a possible Samsung fabrication factory being constructed in the United States. Earlier this year, news broke that the rumors are indeed true and that Samsung is looking to construct a $17 billion factory.

Currently, they are investigating three potential build sites and have not yet settled on the exact location. The three states in the running for this monumental project are Arizona, New York, and Texas.

Whichever state they choose is going to see a big surge in demand for contractors, as Samsung has expressed interest in getting the factory completed quickly. In fact, representatives have stated that they want the facility to be online by the fourth quarter of 2023.

That does not mean that they will be operating at full capacity, as tech fabrication facilities generally ramp up slowly. Regardless, such a large project will have huge financial benefits for any city that is chosen to play host.

What Will the Factory Produce?

Samsung’s new factory will be used to manufacture semiconductors for high performance electronic devices and cell phones. These chips will be distributed to a variety of Samsung customers. However, IMB and Nvidia will likely account for the vast majority of purchases.

The chips are referred to based on their size. For example, most high-end devices incorporate 5nm (nanometer) chips. Currently, Samsung’s existing facility in Austin, TX, manufactures 11nm and 14nm hardware for a variety of applications.

Rumor has it that the new facility will produce 5nm chips. Samsung has also made numerous public claims about commercializing 3nm chips, which is the natural progression of advancement in technology.

With that said, any new chip is extremely costly when it’s first released. That added cost can discourage companies from purchasing the new tech until it is refined, at which point, costs are likely to drop.

The city that Samsung chooses for the facility will reap the benefits of roughly 1,800 long-term jobs. This is not counting the hundreds of contractors that will be employed to work on the project. The financial impacts of this facility will be huge, which is why all three states that are in the running are clamoring to win over Samsung’s business.

How is Samsung Choosing the Location?

Samsung has made some pretty harrowing demands from its potential suitors. While many details are still under wraps, the tech giant has informed Travis County that they want a 100% tax abatement. They also requested a 50% city tax abatement from Austin.

While it is very common for cities and states to offer tax breaks to new corporations to encourage investment, 100% abatements are extremely rare. Samsung will likely choose the state that offers the company the best break on taxes. The fact that the U.S. is without a leading semiconductor manufacturer will likely persuade government officials to give in to Samsung’s stringent demands.

As of now, Austin is the front runner, as they were mentioned numerous times by Samsung. The fact that Samsung already has a factory there surely helps their case. However, Arizona is not out of the race just yet.

Benefits of the New Facility

As mentioned above, Samsung’s multi-billion-dollar facility will have significant short and long-term benefits to the host city. The project will create significant work for contractors and will also account for hundreds of new jobs. There will undoubtedly be indirect job creation, too, thanks to the injection of revenue into the local economy.

As a contractor, getting involved in such a large project requires the latest skills and licensure. While we cannot help persuade Samsung to choose Arizona, RocketCert can help you to obtain the skills you need to get involved in the project!

RocketCert is the premier online professional licensure organization. We offer hundreds of remote courses and can help you to obtain or renew an Arizona contractor’s license.