back to article Samsung spends $4bn tarting up Texas factory

Samsung has said it will invest around $4bn to renovate its US chip factory so it can increase production of the semiconductors used in smartphones and tablets. The Korean firm will plough the money into the plant in Austin, Texas, the only factory it has outside of Korea. Samsung said the cash will be used to renovate …

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  1. g e

    Or perhaps...

    It will 'regretfully no longer be able' to create those jobs and opportunities in Texas due to the outcome of Apple's pernicious litigation against the company.

    or even more simply...

    Sammy knows it'll get an appeal in Texas.

    1. Anonymous Coward
      FAIL

      Or perhaps again...

      Since this plant in Austin mainly produces Apple's processors, that's not actually true and instead it has all to gain from Apple's legal victory.

      A win by Apple would mean less competing Tegras and Exynos made in Taiwan and Korea respectively.

      1. jai

        Re: Or perhaps again...

        Texas: home of the patent troll... methinks there's a method behind Samsung's actions here.

        1. Anonymous Coward
          Facepalm

          Re: Or perhaps again...

          Ah right, Samsung built their billion dollar factory in Texas because it's the home of patent trolls, not because it's a hotbed of the silicon industry. Got it.

      2. Anonymous Coward
        Anonymous Coward

        Re: Or perhaps again...

        A win by Samsung in the court would mean 1) it didn't have to pay damages to Apple 2) would be able to sell its kit in the US AND 3) it would still be making stuff for Apple (because Apple isn't going to be knocked out of business through losing a registered design legal fight).

        Trebles all round!

  2. Thomas 18
    Thumb Up

    RE:Sammy knows it'll get an appeal in Texas.

    So cynical!

    Well even if that is the reason, it's nice to see more producing going on rather the typical bankstering professions that don't contribute anything useful to the world.

    1. An ominous cow herd

      Re: RE:Sammy knows it'll get an appeal in Texas.

      I'd like to see how all that spending would be funded without those "typical banksters" and their "profession"...

      1. Chronigan

        Re: RE:Sammy knows it'll get an appeal in Texas.

        Bankers that invest in a industry that actually produce physical goods or provide services are very necessary and good for the economy. Those that simply move money around from stock to stock as the market fluctuates generate money for their banks, but nothing for the rest of society.

  3. Big_Ted
    Paris Hilton

    Apple produce very little themselves so couldn't do anything like this so its obvious that because Samsung decide that its a good idea to spread its ability to produce chips to various parts of the world as a method of not being caught out due to weather or political problems ie the floods that knocked HD production are of course only doing it due to Apples patent spat.

    Intel have plants all over the world but no one thinks its due to any other reason than being in the best place possible economically and for distribution and safety of diverse locations.

    If this was because of the court case don't you think they would have made the announcement a week before the jury was selected ?

    1. Anonymous Coward
      Anonymous Coward

      Most computer giants produce very little themselves. There's simply no need to buy your own fab facilities unless you feel you can save loads via vertical integration (see MOS and Commodore in the 80s).

      It's much easier to shop around and pay someone else to build stuff for you. You can bring capacity online quickly by getting parts made by other people as well as your main supplier. Even Samsung do this by sourcing LCDs from other people when they are running short.

      You also don't have to worry about hiring and firing.

  4. Anonymous Coward
    Flame

    In other news, Samsung is staffing their Austin factory with AMD veterans

    Samsung Hires Another AMD Veteran, Positioning Itself As Intel Rival

    Sounds like great news for US companies like Intel!

  5. Alan 6

    How the fuck do you send $4bn dollars renovating a plant?

    Gold leaf wallpaper and diamond encrusted taps in the wash rooms...

    1. Nev Silver badge
      FAIL

      I vote the above...

      ...as the daftest comment posted today.

      1. Anonymous Coward
        Anonymous Coward

        Re: I vote the above...

        "

        I vote the above...

        ...as the daftest comment posted today.

        "

        Hasn't RICHTO posted anything then ??

        1. Anonymous Coward
          Anonymous Coward

          Re: I vote the above...

          He has, but he checks the "post anonymously" box...

    2. Anonymous Coward
      Anonymous Coward

      "How do you send $4bn dollars renovating a plant?"

      Umm, by buying the equipment. You're obviously not familiar with the cost of the equipment in a modern fab ... $4bn is probably in the right ballpark for a modern 28nm and below production facility. Individual pieces of equiment can be priced in the millions of dollars so it soon adds up.

      1. Alan 6

        And why does the kit cost so much?

        Is it because Samsung also builds the kit, so the money flows round & round the same business?

        That was the point of my question...

        1. Steve Todd
          Stop

          @Alan 6

          There are only a couple of companies in the world that make the technology needed to fab at 28nm, and Samsung isn't one of them. It's a very specialised and very expensive business.

        2. Anonymous Coward
          Anonymous Coward

          @Alan 6

          No, Samsung does not build the kit. There are companies like ASM Lithography that build the kit. Samsung just builds the processors that is built by the kit. You probably have heard about ASML before. Intel has spent more than $4 billion on a 15% stake in the company, TSMC spent over $1 billion on a 5% stake with a promise of another $95 million in five years. Samsung is also expected to invest in the company as well.

          Why would Samsung build this technology when it it is cheaper to buy it. It is getting harder and harder to get the process size smaller and smaller. There is more than one-way to do it, some are better than others. If you build the kit, you might get stuck with a process that is not as good as what is offered elsewhere but you have no choice but to use what you built though. If 15% is worth around $4 billion, the company is worth over $25 billion. Intel doesn't even have enough cash to buy the company nor would they want to.

  6. Anonymous Coward
    Anonymous Coward

    Samsung learns the rules of the game.

    1. Be so good you are capable of destroying the indigenous semiconductor (and other) industry.

    2. Start getting lawsuits from in country companies.

    3. Pay protection money in the form of inward investment.

    4. Government lays off.

  7. John A Blackley

    Well done Austin!

    It was a bit of a coup when you got the original plant. Getting this investment is a testament to the good works the people have done there.

  8. Rabbit80

    Maybe..

    This could be a way around US import bans when they get sued in the future?

    1. Anonymous Coward
      Anonymous Coward

      Re: Maybe..

      Yeah, that's what we need more corporations inporting Chinese slave shop produced crap to the U.S. without paying duties that match import duties of goods into China.

  9. Anonymous Coward
    Anonymous Coward

    In the U.S, you can buy...

    ...all the "justice" you can afford. Samsung has lots of money to buy what they want from municipalities and the FTC.

  10. Anonymous Coward
    Anonymous Coward

    Samsung probably saved way more than this...

    ...by using Chinese slave labor.

  11. cs94njw
    Go

    Would be a nice way to avoid import restrictions....

    Perhaps they might not build the devices there, but an intra-factory transfer of "stuff", which then just happens to get dispatched from Texas?...

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