Samsung Electronics Co announced plans for a $17 billion semiconductor plant in Texas, which will create more than 2,000 jobs and strengthen the South Korean company's position as a key supplier in the global manufacturing supply chain.

The decision came five months after the tech giant announced plans to establish a second next-generation chip plant in the US, and as chip supply shortages forced global vehicle and consumer electronics manufacturers to cut production.

In unveiling the plans, Texas Governor Greg Abbott states that the project will create more than 2,000 jobs. Samsung also stated that once the plant is functioning, it will indirectly create thousands of extra jobs. "The ramifications of this facility go well beyond Texas' borders," Abbott warned. "It's going to have a global influence".

Samsung took into account "the local semiconductor ecosystem, infrastructure stability, local government assistance, and community development prospects", among other things.

According to Kim Ki-nam, vice chairman and CEO of Samsung's device solutions division, the move will help Samsung create the framework for another crucial chapter in our future.

"By increasing our manufacturing capacity, we will be able to better service our clients' needs and contribute to the global semiconductor supply chain's stability", he says.

As Samsung celebrates 25 years of semiconductor production in the US," the additional investment will also provide more jobs and promote local community training and talent development, according to Kim.

According to Texas Governor Greg Abbott's administration, it will be the greatest foreign direct investment in the state's history.

Samsung's new plant would provide many opportunities for hardworking Central Texans and their families, Abbott said, adding that it will "play a vital role in our state's continued excellence in the semiconductor industry.

Construction will begin in the first part of next year, with mass production starting in the second half of 2024.

Samsung's Austin factory, also known as Line S2, produces RF integrated circuits, display driver integrated circuits, solid state drive controllers, image sensors, and other microprocessors with nodes ranging from 14 to 65 nanometers.

With this new move, the tech giant has joined a growing list of global semiconductor businesses seeking to expand production to satisfy rising demand.

Samsung is doubling down on contract chip production by constructing a new fabrication plant on more than five million square meters of land in the US.