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Samsung spaffs $3.9bn on chip factory in TEXAS

200 new jobs, expansion starts 2013

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Samsung's has announced that it will be spending $3.9bn upgrading its iPhone chip-making factory in Austin. The South Korean firm said it had finalised the deal after talks with state government officials in Texas.

Samsung announced the plans last week, and got the governmental go-ahead last night, according to a report from Reuters. Texas rubber-stamped both the plant expansion and the job hiring, which should create 200 posts and see state-of-the-art mobile processors on 300mm wafers at the 28 nanometer process node turning out of production lines by the end of 2013.

Samsung Austin Semiconductor is already America's biggest chip fabrication plant and the size of nine football fields. The new investment will expand system-chip production lines in the Fab 2 plant, opened in 2007, which builds chips on 300mm wafers. Austin is where the iPhone's A5 and A5X chips are built and the billion dollar investment is a big bet on strong and increasing demand for mobile chips.

The new cash brings the Korean company's total investment in Texas up to $15bn since 1997, when it first set up a presence there. Samsung’s campus in Austin currently employs 2,500 direct employees according to the Samsung statement. ®

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