Exclusive-Samsung's new Texas chip plant cost rises above $25 billion -sources

WASHINGTON/SAN FRANCISCO : A chip plant that South Korea's Samsung Electronics Co Ltd is building in Taylor, Texas, will cost the world's biggest memory chipmaker over $25 billion, up more than $8 billion from initial forecasts, according to two people familiar with the matter.

"The higher construction cost is about 80 per cent of the cost increase," one of the sources said."The materials have gotten more expensive," the source added.Chipmakers are applying for billions in grants from the Biden administration thanks to the CHIPS Act, aimed at ramping up chip production in the United States. But increasing costs raise questions about how far those dollars will go. The bill was proposed in 2020, before a historic run-up in inflation that U.S.

That could push up the cost of what are already huge spending plans. Last year, Taiwan Semiconductor Manufacturing Co, the world's largest contract chip manufacturer, announced it was more than tripling a planned investment in a new plant in Arizona to $40 billion. Samsung, the world's No.2 contract chip manufacturer, announced its Taylor, Texas, plant in 2021. It aims to make advanced chips for functions such as artificial intelligence, 5G and mobile phones, and promises to create 2,000 high-tech jobs. Unlike some of its rivals, Samsung has already broken ground.

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