Samsung plans on investing over $1 billion into its semiconductor facility in Austin, Texas during the first half of 2017 to help it meet the increased demand for chipsets in smartphones and other devices.
Recently the company reported a 30 per cent decline in its operating profit for the third quarter of this year. These lower numbers were likely due to the cost of the Galaxy Note 7 recall and the loss of consumer confidence that occurred alongside it. Now, Samsung is looking to increase its ability to produce chipsets with the hope that this investment will pay off later down the line.
Samsung Austin Semiconductor (SAS) has had a major impact on central Texas, with the facility contributing $3.6 billion to the region in 2015 alongside providing 10,755 jobs. Samsung's semiconductor company was created in 1997 and since then the company has invested over $16 billion into its facility.
Austin also appreciates the contributions the company has made and the city's Mayor Steve Adler has released a statement regarding Samsung's decision to expand its facility, saying: “I was glad to discuss this with Samsung when our trade delegation visited Korea, and I'm thrilled that this plan is coming to fruition. Samsung is so often a source of good news in Austin whether it's about jobs, education, workforce development, housing or helping the homeless. Samsung is a great partner for Austin's present, and this announcement tells us that they'll be an even bigger part of our future.”
According to Catherine Morse, the general counsel and director of public affairs at SAS, the company intends to hire between 250 and 500 marketing technicians and engineers.
Samsung's $1 billion investment will also be used to pay for construction costs along with manufacturing equipment for the expansion that will be finished in 2017.
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