SAN FRANCISCO—A subsidiary of South Korea's Samsung Electronics Co. Ltd. plans to invest $4 billion to beef up the company's logic semiconductor fab in Austin, Texas, the company said Tuesday (Aug. 21).
Samsung completed construction of phase two of the Austin fab—where Samsung builds A4 and A5 processors for Apple Inc. as well as other logic chips—last year. The upgrade plans announced Tuesday will bring Samsung's total fab investment in Texas to $13 billion, Samsung said.
Samsung said the remodeled fab line will mainly produce mobile SoCs on 300-mm wafers at the 28-nm process node.
Samsung said it plans to start work on the upgrade later this month. Mass production of the retroffited facility is expected to commence in the second half of next year, Samsung said.
"The added ability in production will allow our customers to better respond to market needs," said Woosung Han, president of Samsung Austin Semiconductor, in a statement.
Samsung said the $4 billion investment would mark the largest ever foreign investment in the state of Texas.
Last week, Samsung announced plans to expand its semiconductor R&D facility in San Jose, Calif. The project will receive substantial tax breaks from the state of California and San Jose.