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

THe costs for the new 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 study, skyrocketing construction costs can be attributed to steel prices rising since last year’s start of construction. Reuters Report.

SOUTH KORE PLANS THE ‘WORLD’S LARGEST’$230B SAMSUNG CHIIP FACTOR TO RIVAL SUBSIDIES

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

According to two sources, the company has spent approximately half of its $17 billion budget on the factory as it rushes for completion by 2024 in order to start production in 2025 ahead of schedule.

This new figure of $25 billion means that one facility will cost more than half the total amount of company operations in the United States from 1978 to now. 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.

Many leading Republicans For reasons ranging anywhere from national security to job creation, 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.”

CLICK HERE TO READ MORE ABOUT THE WASHINGTON EXAMINER

Rep. Michael McCaul (R.TX) 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 said. “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.”