Report: Samsung's Austin economic impact more than doubled to $13.6B in 2022

[Daniel Nenni]

A network of factories is popping up to serve a megafactory

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Samsung is a powerhouse in Central Texas — and it's charging up its impact exponentially.

Samsung Austin Semiconductor releases 2022 Economic Impact Report, highlighting significant contributions to Central Texas economy​

Austin, Texas — Oct. 18, 2023 — Samsung Austin Semiconductor, a world leader in advanced semiconductor technology, today released its 2022 Economic Impact Report—a comprehensive report that outlines the substantial economic contribution and impact generated through operations of the Austin fab and the construction of the new manufacturing facility in Taylor to the Central Texas economy.The 2022 Economic Impact Report provides a detailed overview of Samsung Austin Semiconductor’s economic impact and its substantial investments to construct the $17 billion Taylor facility and in workforce development, critical partnerships and the local Austin and Taylor communities—reaffirming the company’s commitment to being a trusted and proven corporate partner in the communities in which it serves.Key findings from the report include:

•Economic Growth: In 2022, Samsung’s Austin manufacturing site along with the Taylor construction site injected $13.6 billion into the local economy – more than double compared to $6.3 billion in 2021. The regional impact of the Taylor project alone is expected to be over $42 billion across Central Texas.
•Direct and Indirect Employment: Samsung Austin Semiconductor supported the creation of 4,300 direct, and an additional 9,935 indirect, jobs in Austin and 4,600 in Taylor.
•Education and Workforce Readiness Partnerships: Samsung Austin Semiconductor remains dedicated to expanding advanced manufacturing opportunities and STEM programs. The report details the investments made in critical partnerships in 2022, which have been built upon in 2023 with the recent announcement of $1 million plus donations to the University of Texas at Austin’s Cockrell School of Engineering, University of Illinois at Urbana Champaign’s Grainger College of Engineering and Texas A&M University’s College of Engineering.
•Community Giving: Building on its commitment to charitable giving and partnerships, Samsung Austin Semiconductor donated more than $1.5 million, benefiting over 50 local organizations. Building upon these efforts, in 2023, Samsung Austin Semiconductor donated $3.2 million to 76 area community organizations as part of its Samsung Gives initiative.
•Sustainability: Samsung Austin Semiconductor remains committed to being a responsible corporate partner. In 2022, it reached the Zero Waste to Landfill Gold Level validation for recycling or reusing 97% of waste.

“In 2022, the Samsung Austin Semiconductor campus on Parmer Lane and construction at the $17 billion Taylor facility injected $13.6.3 billion into the Central Texas economy while supporting over $1 billion in workers’ salaries,” said Jon Taylor, corporate vice president of Fab Engineering. “While many folks may think we make TVs, we actually make the 'chips' that power mobile devices, tablets, cars and other devices all of us use daily. These chips start out as raw silicon wafers and are transformed into integrated circuits – or chips – as we like to call them. Leading this critical work and the construction that will expand our Texas footprint is the dedicated team of more than 4,500 direct employees, 12,000 indirect staff such as partners, vendors and contractors, and 4,600 construction workers. Our robust employee and supplier base makes Samsung Austin Semiconductor one of the largest technology employers in the region."

To read the complete 2022 Economic Impact Report, click here.

Samsung Austin Semiconductor releases 2022 Economic Impact Report, highlighting significant contributions to Central Texas economy | Samsung Semiconductor USA

The 2022 Economic Impact Report—a comprehensive report that outlines the substantial economic contribution and impact generated through operations of the Austin fab and the construction of the new manufacturing facility in Taylor to the Central Texas economy.

semiconductor.samsung.com

 

[Daniel Nenni]

One of the many benefits of on-shoring.

 

[MKWVentures]

I have said this many times before. The ecosystem created by a Fab is incredible. I can't think of any industry that matches it. New mexico, Utah, Oregon, Arizona..... other countries also.... incredible transformations. If you decide to start your own city, start with a Fab.... now just need to get someone to invest 10B dollars LOL.

 

[Daniel Nenni]

I have said this many times before. The ecosystem created by a Fab is incredible. I can't think of any industry that matches it. New mexico, Utah, Oregon, Arizona..... other countries also.... incredible transformations. If you decide to start your own city, start with a Fab.... now just need to get someone to invest 10B dollars LOL.

If you look at Taiwan's economy semiconductors really is a big part of it. Just like Silicon Valley back in the 70s and 80s, same with Japan. On-shoring is going to change the world economy a bit. Hopefully the US keeps investing and I pity the countries who are not because it will take YEARS to catch up and the competition will be FIERCE! We are building so much semiconductor manufacturing capacity there is a bubble forming and it will pop at some point in time. AI is fueling semiconductors but that is also a bubble. We will all be in a bubble bath soon enough.

 

[blueone]

If you look at Taiwan's economy semiconductors really is a big part of it. Just like Silicon Valley back in the 70s and 80s, same with Japan. On-shoring is going to change the world economy a bit. Hopefully the US keeps investing and I pity the countries who are not because it will take YEARS to catch up and the competition will be FIERCE! We are building so much semiconductor manufacturing capacity there is a bubble forming and it will pop at some point in time. AI is fueling semiconductors but that is also a bubble. We will all be in a bubble bath soon enough.

I agree. I think a side-effect of the manufacturing bubble might be that wafer prices will fall, perhaps mostly because margins will fall. Oversupply is often characterized by the "some revenue is better than no revenue" strategy when high cap-ex is on the line. I suspect this will give custom chips an advantage over merchant chips, because falling foundry prices will magnify the advantages of custom designs over broad market targeted designs. The bubble might be short-lived, as bubbles often are, but I find when you get hooked on custom chips it's a tough habit to break. If this theory is correct, it implies that chip design tool companies will prosper as foundries are squeezed. Cadence and Synopsis share prices have been sinking lately...hmmm.

 

[benb]

Besides Samsung, the Texas growth story is strong too:

The latest Texas Economic Development Corporation report says since July of 2022, Texas added 441,700 jobs, putting Texas number 1 for job growth.

The Texas economy has grown to $2.36 trillion based on preliminary GDP estimates for 2022, making it the 8th largest economy in the world.

And Texas accounts for 23% of all us exports.

Texas business leaders building state of the future

Austin is known for its giants like Dell, Motorola, and now Tesla, along with its startups and disruptors like Icon and Apptronik.But leaders in Austin say this

cbsaustin.com

 

[benb]

The Dallas Fed has a report on Austin in October. A mixed picture of rising wages, while at the same time rising mass layoffs, mostly in white collar industry.

Austin Economic Indicators, October 5, 2023

In August, Austin’s employment declined and unemployment rose. In addition, layoff notices covered by the Worker Adjustment and Retraining Notification Act (WARN) increased, concentrated in the professional and business services sector.

www.dallasfed.org

Things are not great at the platform industries (Apple, Amazon, etc) vs. semiconductors.

Austin has both, and the growth is clearly tilting toward semiconductors.