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The Wall Street Publication > Blog > Markets > Samsung Orders U.S. Chips, With a Side of Geopolitics
Markets

Samsung Orders U.S. Chips, With a Side of Geopolitics

Editorial Board Published November 23, 2021
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Samsung Orders U.S. Chips, With a Side of Geopolitics
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Every country wants a cutting-edge semiconductor plant. Samsung Electronics’ plan to build one in the U.S. is taking advantage of that. But the company will have to learn to negotiate the ever tighter relationship between geopolitics and advanced chip making. Occupying the commanding technological heights of the world’s most important industry in the world’s largest economy is an enviable place to be, but not necessarily a comfortable one.

The South Korean technology giant plans to build a $17 billion plant in Taylor, Texas, to make advanced chips for its contract-manufacturing, or foundry, business. That is another step toward the Biden administration’s goal of boosting chip making at home. Samsung rival Taiwan Semiconductor Manufacturing has started construction on its $12 billion Arizona plant that will go into mass production in 2024. Intel said in March that it would invest $20 billion in two new fabrication plants in Arizona.

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